How safe are stablecoins?

It’s true that stablecoins — whether collateralized or algorithmic — are less secure than U.S.-regulated bank accounts and money market funds . But from a stability perspective, that’s not the point. The bank-run risk for stablecoins is largely independent of the regulated economy, so it is a diversifying risk.

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What is the purpose of stablecoins?

While predictable cryptocurrency may sound like an oxymoron, stablecoins – like their name suggests – were designed to counter crypto’s hallmark volatility and provide a convenient way for crypto traders to preserve their fiat value without having to cash out of the market and to allow users to pay for everyday goods …

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