Stablecoin
A stablecoin is a cryptocurrency designed to maintain a stable value, typically by pegging 1:1 to a fiat currency (e.g., USD) or a basket of assets.
Key point (prasad-2021-five-myths-cryptocurrency): Stablecoins solve bitcoin’s volatility problem for payments — but their value derives from the government-backed currencies they are backed by. They therefore do not threaten the dollar’s primacy; they extend it.
Examples: USDC, Tether, Facebook’s Diem (proposed). Stablecoins will “hasten the ascendance of digital payments, ushering out paper currency” (Prasad 2021).
See central-bank-digital-currency, cryptocurrency.