• andruid@lemmy.ml
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    1 year ago

    Currency pegging is a term in monetary theory. Stable coins are examples of currency reserves in the crypto space.

    • Mandy@beehaw.org
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      1 year ago

      sure, except there are no stable coins, when, again, all of them can be crushed in a matter of seconds

      • andruid@lemmy.ml
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        1 year ago

        Again no, stable coin is a term, but I see how it could be confused. It’s in reference to a token backed by some other store of value. So an agreement that x number of a cryptocurrency can be exchanged for x number of dollars/yuan/etc.

        • Mandy@beehaw.org
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          1 year ago

          i am aware, yet i have yet to see a single one actually stay stable and not crash than again, im not a crypto gal and making sure i never will be

          • andruid@lemmy.ml
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            1 year ago

            That’s fair while they do have statically more stability then the crypto they are pegged too they are still more volatile then USD. It would be interesting to see the reserve size to volatility ratio of different currencies to see how they compare.