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.
We 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.