Outstanding 1units are typically backed on a one-to-one basis with those reserve assets. Generally, the issuer agrees to issue and redeem units of stablecoins in exchange for their equivalent in units of the reference asset. [...] The units in circulation are typically backed in a one-to-one relationship with the reserve assets. Generally, the issuer commits to issuing and redeeming stablecoin units in exchange for their equivalent in units of the reference asset. [...] The choice of reserve assets can impact the stability and trust in the stablecoin, as the quality and liquidity of these assets are determinants of its ability to maintain its nominal value. [...] In this scenario, the stablecoin represents the right to receive a specific quantity of the physical commodity or its equivalent value in currency. [...] In the realm of domestic payments, stablecoins are more likely to be utilized in economies with less developed payment systems or where access to such systems is limited for a significant portion of the population, therefore improving financial inclusion. [...] In conclusion, while stablecoins were initially designed to impart stability to the crypto asset market and enhance their utility as a means of payment, their use cases have expanded beyond these objectives. Their role in the DeFi ecosystem and as an investment vehicle exemplifies this evolution. [...] Fluctuations in these asset values can lead to uncertainties in the value of stablecoins, posing risks to their users and the broader financial system. [...] According to the study by [49], understanding and addressing data gaps in the crypto assets market, especially concerning stablecoins, is crucial for realizing the potential benefits of stablecoin usage. [...] the fact that this type of assets, in addition to sharing potential AML/CFT risks with other VAs, are exposed to particular risks, such as mass-adoption). [...] 55Tokens that are issued at a price linked to the value of one or more fiat currencies and secured its redemption at par.
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