Insider Q&A: Explaining the fast growth of stablecoins
ABC News
Among the fastest-growing forms of cryptocurrency are stablecoins, which use blockchain technology like Bitcoin and ethereum
WASHINGTON -- Among the fastest-growing forms of cryptocurrency are stablecoins, which use blockchain technology like Bitcoin and ethereum. Stablecoins are distinct, though, because they are pegged to a government-backed currency, like the dollar, or to gold. With each digital token valued at, say, $1, stablecoins are potentially better-suited to commercial transactions than are other cryptocurrencies that can fluctuate in value.
There are more than 200 stablecoins, worth nearly $130 billion — a six-fold increase from a year ago. The largest is Tether. The second-largest is USD Coin, which is issued by the financial services firm Circle.
The Associated Press spoke recently with Dante Disparte, Circle's chief strategy officer, about the uses of stablecoins and the federal regulations they may face as digital currencies gain greater visibility. The interview has been edited for length and clarity.
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