What are Stablecoins and How Do They Work?

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Stablecoins are cryptocurrencies pegged to stable assets such as fiat currencies or commodities. Unlike volatile cryptocurrencies like Bitcoin, stablecoins maintain predictable value, making them ideal for payments, remittances, and settlements. Common mechanisms include fiat-backed reserves, crypto-collateralized models, or algorithmic stabilization.

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Stablecoins facilitate fast, borderless transactions without traditional banking delays, while retaining transparency and auditability through blockchain. They also enable programmable money, enabling conditional payments, smart contracts, and tokenized financial services.

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Monavate integrates stablecoins into its platform, allowing businesses to link them with virtual or physical cards. Users can transact in stablecoins, while Monavate handles compliance, conversion, and settlement with traditional fiat accounts. This enables real-world usability for digital assets and positions businesses at the forefront of Web3 financial services.

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