For your convenience, IQ Option broker has lowered the USDT/USDC minimum withdrawal amount to $250 (as compared to the previous minimum of $500).
If you’d like to receive regular payments to a crypto wallet, set up Tether or USDC payments in your Personal area.
What is a Stablecoin?
You’ve probably heard of cryptocurrencies like Bitcoin and Ethereum, but what is a Stablecoin? Stablecoins are digital currencies backed by a reserve asset. They act as a medium of exchange and are designed to withstand market volatility. They’re often linked to fiat money or exchange-traded commodities.
Unlike fiat currencies, which are subject to a range of volatility, stablecoins are backed by a reserve asset. The reserve assets may include fiat currencies, other cryptocurrencies, or mainstream assets such as the dollar. They are used to make payments for goods and services.
The main purpose of stablecoins is to control volatility by tying their value to more stable assets such as fiat currencies. However, investors should remember that even stablecoins come with risks. The value of these cryptocurrencies can fall as much as ten percent in one day if the underlying assets are devalued. In order to mitigate the risk of unstable coins, stablecoins were created.
Stablecoins are a medium of exchange
Stablecoins are digital currencies that bridge the gap between highly volatile crypto-assets and stable real-world assets. Stablecoins are better at price stability than other cryptocurrencies, which can make it difficult to set the pricing on products or services. Today, if you paid $5 in crypto today, it could be worth $4 tomorrow. Stablecoins offer better price stability, which is especially useful for merchants.
The USDC is issued on multiple public permissionless blockchains. Anybody can operate a node on one of these blockchains, which makes it easy to transfer stablecoins between pseudonymous wallets. While most exchanges require to Know Your Customer identity checks, there is no central registry or single ledger that tracks ownership. Hence, stablecoins are not an ideal medium of exchange.
They are a model for central bank digital currencies
Stablecoins are private digital currencies with a common underlying currency. They are a good example of the benefits of decentralizing the provision of money. This separation of credit and monetary functions goes back about 80 years. The underlying technology behind stablecoins makes digital verification more cost-effective, and this can expand the role of the public sector in money provision. It also addresses consumer protection, financial stability, and financial crime prevention.
The Bank of England has acknowledged the economic benefits of stablecoins. Unlike commercial banks, stablecoin providers do not have to meet the same regulatory requirements as traditional financial institutions. In addition, they cannot rely on a weakened regulatory environment for the same level of risk as commercial banks. Instead, they must be able to deliver on their promises. That is where stablecoins come in.
