Stablecoins are a type of cryptocurrency designed to maintain a stable value by pegging them to a reserve of assets, such as the U.S. dollar or gold. This stability makes them less volatile compared to other cryptocurrencies like Bitcoin or Ethereum, which can experience significant price fluctuations. There are different types of stablecoins, including fiat-collateralized stablecoins, which are backed by real-world currencies, and crypto-collateralized stablecoins, which are backed by other cryptocurrencies. They are often used for transactions, remittances, and as a means of preserving value in the digital economy.