Stablecoins are cryptocurrencies with a fixed rate or resistant to significant fluctuations. This class of digital assets adds to the well-known advantages of cryptocurrency the low volatility of the rate (or its almost complete absence). It can be achieved by collateral Stablecoins to various assets (e.g. fiat currency, gold, digital currencies or crypto active baskets) or by reproducing some elements of the monetary policy used by central banks (Seigniorage Shares concept) on a decentralized basis.
Stablecoins perfectly perform not only the function of an exchange medium but also due to the stability of the rate they can effectively serve as a unit of account and store of value. This may allow many people to receive a salary in a cryptocurrency without fearing a sharp decline in its rate. Stablecoins can be an alternative to fiat currencies for residents of economically unstable countries with high inflation and substantial currency restrictions. Also, Stablecoins can be effectively used in the market of cryptocurrency loans and derivatives.