Fiat-Pegged Stablecoins as a Stepping Stone to the Next-Generation Global Currency

There is no question that stablecoins are making waves in the sea of cryptocurrencies. Fiat-backed stablecoins arose from the need for a stable store of value and way to maintain purchasing power over time. Over the last 25 years, the ten top most-traded currencies have significantly depreciated in value. The top five stablecoins by market capitalization are all backed by the US dollar, perhaps due to the dollar’s international familiarity and acceptance as a global currency. Other notable players in the stablecoin landscape include USDCoin, TrueUSD, Paxos, DAI, STATIS EURS, BitUSD, and Gemini.