Quotes About Stablecoin

The mechanism by which the stablecoin maintains its peg varies by implementation. The three primary mechanisms are fiat-collateralized, crypto-collateralized, and non-collateralized stablecoins.

The largest fiat-collateralized stablecoin is Tether5 (USDT) with a market capitalization of $62 billion, making it the third largest cryptocurrency behind Bitcoin and Ethereum at time of writing. Tether also has the highest trading volume of any cryptocurrency but is not audited.

Stablecoin systems are payment systems, and the biggest problem with international payments is not the technology — it's compliance with anti-money-laundering laws. Cryptocurrencies mostly work around this by ignoring it — but Libra couldn't be allowed to do that.