Stablecoin and its implications
In recent times, Tether has been in the spotlight with regard to the holding of its reserves backing its crypto coins. Tether is a stablecoin – stable because one Tether is supposed to be backed by one US dollar. This is a new revolution where cryptocurrencies are backed by fiat currencies, other digital currencies and algorithmic contracts and not used merely as instruments of speculation. But how does stablecoin work? And more importantly, does a stablecoin equate to stability in the crypto world? We will look to discuss some of these points in this article.