Question

What is fiat-backed stablecoin?

Answer 1

A fiat-backed stablecoin is a type of cryptocurrency that is pegged to a traditional fiat currency, such as the US dollar or the Euro. This means that for every unit of the stablecoin in circulation, there is an equivalent amount of fiat currency held in reserves. This backing helps to stabilize the value of the stablecoin and provide users with a more predictable and less volatile alternative to other cryptocurrencies.

Answer 2

A fiat-backed stablecoin is a type of cryptocurrency that is pegged to a traditional fiat currency, such as the US Dollar, Euro, or Japanese Yen. This stablecoin maintains a stable value by holding a reserve of the fiat currency it is pegged to. This backing ensures that the stablecoin's value remains relatively stable and less volatile compared to other cryptocurrencies like Bitcoin or Ethereum.