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Stablecoins are a type of digital currency that is based on blockchain technology and is designed to maintain a stable value by being pegged to an underlying asset such as a fiat currency, commodity, or cryptocurrency. This is achieved through a variety of mechanisms such as collateralization, algorithmic stabilization, or a combination of both.

The goal of stablecoins is to provide the benefits of cryptocurrencies, such as fast and borderless transactions, while minimizing the price volatility that is often associated with other cryptocurrencies like Bitcoin. This stability makes stablecoins useful for a wide range of applications, including remittances, online payments, and trading.

Stablecoins can be issued by individuals, companies, or organizations and can be traded on cryptocurrency exchanges alongside other cryptocurrencies. Some popular examples of stablecoins include Tether (USDT), USD Coin (USDC), and Dai (DAI).

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