Fiat-Pegged Cryptocurrency
What is Fiat-Pegged Cryptocurrency?
Fiat-Pegged Cryptocurrency is a coin, token, or asset produced on a blockchain that is tied to a currency issued by a government or bank and is sometimes referred to as “pegged cryptocurrency.” Every pegged cryptocurrency is built to always have a certain amount of cash on hand as reserves.
Cryptocurrencies that are tied to fiat are regarded as stablecoins. They were created to tackle extreme levels of volatility that usual crypto coins experience.
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