Q. With reference to Stable Coin, consider the following statements:
1. It is a type of cryptocurrency that is typically pegged to an existing government-backed currency.
2. Stable coins hold cash, government debt or commercial paper and others as a reserve.
Which of the statements given above is/are correct?
Answer: C
Notes:
Both the statements are correct.
A stablecoin is a type of cryptocurrency that is typically pegged to an existing government-backed currency.
Stablecoins hold a bundle of assets in reserve, usually short-term securities such as cash, government debt or commercial paper.
They form a bridge between old-world money and new-world crypto aslo they promise to function like perfectly safe holdings.
Source: Indian Express
