How do stablecoins help protect economies from volatility?
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In countries facing high inflation or currency instability, stablecoins — particularly those backed by strong reserve assets — offer a more predictable medium of exchange. Citizens often turn to stablecoins to preserve purchasing power when local currencies fluctuate sharply.
From a policy perspective, regulated local-currency stablecoins allow governments to keep that demand onshore rather than pushing users toward foreign or unregulated alternatives. This helps maintain oversight while addressing real economic needs.