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| What is a stable cryptocurrency? |
Recently, the problem of stable cryptocurrency has increased. It is one of the main types of digital currency at the moment. Tether is the most popular stablecoin.
These coins have aroused the interest of all cryptocurrency enthusiasts. Tether has also been described as a systemic risk that could threaten the entire cryptocurrency space. On August 9, the coin provided evidence of its financial reserves.
Despite the coin's efforts to improve its condition, some people believe that it was created just to preserve the value of the large Bitcoin. The New York attorney general also examined the piece. As a result, Tether was banned from operating in New York, the most important financial and economic city in the United States.
stable cryptocurrency
Tether is the most popular stablecoin, but not the only one. Concerns about stablecoins are not only related to the controversial tether, but also to this type of cryptocurrency.
The head of the US Securities and Exchange Commission has officially called for more powers to regulate cryptocurrency laws. The main objective is to protect investors and their funds from fraud.
The Secretary of the Treasury met with the President’s Financial Markets Task Force to discuss the issue of cryptocurrency.
There is no specific legal explanation for disclosing the assets held by stablecoins. This makes it an important destination for lawmakers and legislators, especially in the USA.
Stablecoins are known by this name because they are linked to real assets. These assets are stable in nature. One example of this is monetary assets such as the US dollar or the euro.
The correlation of these currencies with physical assets makes them less volatile than non-cash currencies such as Bitcoin or Ethereum. Thus, any stable cryptocurrency is a currency linked to the real assets being valued.
Perhaps the strange thing about stablecoins is that under certain conditions they can be centralized. For example, when $600 million was stolen from PolyNetwork, $33 million in Tether tokens were frozen. Hackers cannot take advantage of that.
The stable cryptocurrency managed by Tether can be said to be real currencies, but like other digital currencies it is built on the blockchain.
These coins are used for payment like traditional currencies. Tether has very low commissions on transfers and payments, not more than $1 in most cases.