technology medium true/false

Stablecoins maintain value parity through reserves, algorithms, or hybrid mechanisms.

  1. True
  2. False

Answer: True

Stablecoin types: fiat-collateralized (USDC), crypto-collateralized (DAI), algorithmic (failed Terra). Regulatory focus: reserve transparency, redemption rights, systemic risk mitigation. Critical for crypto ecosystem understanding.

Topic Digital Currencies
Exam Relevance Banking, UPSC, SSC

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