Definition of Stablecoins
What are Stablecoins
A stablecoin is a digital currency, issued by a company, that is pegged to a stable reserve asset, such as the US dollar or gold. A stablecoin is designed to reduce the volatility relative to other cryptocurrencies that are unpegged.
Why are Stablecoins Important
Stablecoins are free from the volatility of non-pegged cryptocurrencies, while inheriting some of their most powerful properties.
- Stablecoins are open, global and accessible to anyone on the Internet, 24/7
- Stablecoins are fast, cheap and secure to transmit
- Stablecoins are digitally native to the Internet and programmable
What Can You Do With Stablecoins
- Minimize Volatility – An asset that is pegged to a more stable currency can give buyers and sellers better certainty that the value of their tokens won’t rise or fall unpredictably in the near future.
- Trade or Save Assets – You do not need a bank account to hold stablecoins. Their value can be sent easily around the world, including places where the US dollar may be hard to obtain or where the local currency is unstable.
- Earn Interest – Some stablecoins earn interest at higher rates than a typical bank account.
- Transfer Money Cheaply – Transfer fees are relatively inexpensive to other money transfer options.
- Send Internationally – Fast processing and low transaction fees make stablecoins a good choice for sending money globally.
GlobEx Markets Financial Dictionary of Terms, Phrases and Concepts
The GlobEx Markets financial dictionary is a reference resource that provides the definitions and explanations of various financial terms, phrases and concepts that are used in international finance and global investing. It includes a broad range of financial terms, such as those related to stocks, bonds, currencies, commodities, options, futures, crypto and much more.
A financial dictionary can be useful for anyone who wants to learn more about finance and investing, or who works in the financial industry. It can help clarify the meaning of technical terms and the language used in financial publications, reports and other sources.
Benefits of the GlobEx Markets Financial Dictionary
There are several benefits to using the GlobEx Markets financial dictionary, including:
- Clarifying Technical Terminology: The financial world is filled with complex terms and language that can be confusing to those who are not familiar with it. A financial dictionary can help clarify the meaning of technical terms and make them more understandable.
- Improving Financial Literacy: By learning the meaning of financial terms, phrases and concepts, you can improve your overall financial literacy and gain a better understanding of the workings of the financial world.
- Enhancing Communication: A financial dictionary can help improve communication among financial professionals by ensuring that everyone is using the same terminology, phrases and concepts.
- Supporting Research: When conducting financial research or analysis, a financial dictionary can be a valuable resource for identifying and understanding key terms, phrases and concepts.
- Facilitating Decision-Making: Understanding financial terms, phrases and concepts can help you make better-informed financial decisions, whether you are managing your own finances or making decisions on behalf of an organization.
Overall, the GlobEx Markets financial dictionary can help improve your understanding of international finance and global investing. It is a valuable tool for anyone who works in the financial industry or who wants to improve their financial literacy.