Stablecoins 101 – The Who, What, Why and How

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With the recent news of the IBM-backed cryptocurrency payments company Stronghold, the spotlight is back on stablecoins. These tokens present a variety of valid use cases yet have proven difficult to bring into practice. With the initial creation of Bitcoin, the dream of a decentralized, anonymous, easily transactional and frictionless currency was partially realized. The pronounced snag, one which plagues nearly all cryptocurrencies, is price volatility. Speculation in cryptocurrencies has become quite popular; unfortunately, volatility renders cryptocurrency unsuitable for some functions. Stablecoins propose to be currencies capable of performing the functions required of digital currency with the added benefit of remaining stable. For starters, stablecoins allow high-value transactions to proceed with greater financial certainty. Imagine buying a car with Bitcoin, only to have the value of your new ride decrease by 20 percent (or more) within a month. I know the stories of Lamborghinis and other lavish purchases with Bitcoin