Word
stablecoin
/ˈsteɪbəlˌkɔɪn/
Definition
n. a type of digital currency designed to keep a steady value by being linked to a stable asset like the US dollar. It is meant to avoid the big price changes common with other cryptocurrencies.
n. a cryptocurrency whose market value is pegged to an external reference, such as a fiat currency or a commodity, to minimise price volatility.
Examples
“Investors use a stablecoin to keep their money safe from market swings.”
“Traders often move their funds into a stablecoin during periods of high market volatility to preserve their capital.”
“While traditional cryptocurrencies are prone to extreme fluctuations, a stablecoin maintains its peg through either algorithmic supply adjustments or collateral reserves held in traditional financial instruments.”
Examples
simple
“Investors use a stablecoin to keep their money safe from market swings.”
contextual
“Traders often move their funds into a stablecoin during periods of high market volatility to preserve their capital.”
complex
“While traditional cryptocurrencies are prone to extreme fluctuations, a stablecoin maintains its peg through either algorithmic supply adjustments or collateral reserves held in traditional financial instruments.”
Real-World Examples
“Deposits based on stablecoins—cryptocurrencies that are designed to maintain a steady price by being tied to a traditional asset, most often the U.S.” “Community banks fiercely opposed provisions allowing rewards on stablecoin holdings, arguing they could pull deposits out of traditional lenders and reduce funding available for farmers and small businesses.” Etymology
A blend of stable (steady in value) and coin: a coin engineered to hold a steady price by being pegged to another asset.
Etymology adapted from Wiktionary, available under CC BY-SA 4.0.
Scan code
englishreference.com/q/stablecoin