Introduction

One of the main arguments raised by cryptocurrencies skeptics is that they are way too volatile to fulfil what we have learned is a key function of money. Acting as a medium of exchange to buy and sell things, and a unit of account – a benchmark for pricing. That’s exactly where Stablecoins come in.

Stablecoins combine the best of both worlds. The stability of fiat with  the borderless, peer-to-peer nature of cryptocurrencies and full transparency over their supply.

This combination puts Stablecoins in the unique position of creating a bridge between cryptocurrencies and the traditional economy.

Borrowing elements of Stablecoin design, several countries, through their central banks, are planning to create  digital versions of their currencies called Central Bank Digital Currencies.

CBDCs are no panacea for the ills of Fiat Money,
 as they will inherit the main weakness of their
 analogue versions - the absence of any cap on supply.