A stablecoin is a type of cryptocurrency designed to maintain a stable value by pegging it to a reserve of assets, such as a fiat currency like the US Dollar or commodities like gold. This stability makes stablecoins less volatile than traditional cryptocurrencies like Bitcoin or Ethereum, which can experience significant price fluctuations. Stablecoins are often used for transactions, remittances, and as a means of storing value in the digital economy. They can facilitate easier trading on cryptocurrency exchanges and provide a bridge between traditional finance and the growing world of digital assets.