During the chilly crypto winter of 2018, one sector of the cryptocurrency industry was still booming. Stablecoins. In this article we will try to get a global view of the Stablecoins and understand their importance for the crypto space, then discuss the issues Stablecoins are experiencing and some innovative solutions.
A stablecoin is a non-volatile cryptocurrency, typically pegged to a currency such as USD or EUR. Cryptocurrencies are notorious for their volatility, subject to the market’s supply and demand cycles. To alleviate this problem, Stablecoins are designed to minimize their volatility by being backed by an underlying asset.