While cryptocurrencies have great potential to excel, the volatile nature and constant price fluctuations are some of the greatest criticisms directed towards the crypto market. After all, a useful currency should provide a store of value and unit of account, both of which require balance. As a result, there is a growing desire to bring stability to the cryptocurrency market, which is now being done through the implementation of “stable coins.”

Stable coins – also known as the “holy grail of cryptocurrency” – are price-stable cryptocurrencies, with a market price that is pegged to another stable asset, like the U.S. dollar. Stable coins share many of the features of Bitcoin, yet are far less volatile. In theory, this makes stable coins ideal and usable as a store of value and a basic medium of exchange.