Glossary - ChicksX

Fiat-Pegged Cryptocurrency is a digital asset tied to a fiat currency, maintaining stable value relative to it.

Fiat-Pegged Cryptocurrency is a digital asset whose value is linked to a specific fiat currency like the US Dollar or Euro. It aims to provide the benefits of cryptocurrency, such as speed and security, while minimizing price volatility. These cryptocurrencies are often backed by reserves of the pegged fiat currency or equivalent assets. This ensures they maintain a stable value. They are commonly used for trading, remittances, and as a store of value. They bridge the gap between traditional fiat currencies and digital assets, offering stability in the volatile crypto market.