Stablecoins are digital assets that maintain a stable value compared to a national currency like the US dollar, and promise to revolutionize global payments infrastructure and beyond. Different stablecoins use different models to achieve their goal of maintaining stable value, each with their own benefits and drawbacks.
There are three main stablecoin models:
Stablecoins take advantage of all of the benefits of public blockchains, including speed, security, accessibility, and transparency, without the drawback of price volatility that characterizes most other digital assets. Unlike traditional electronic payment systems, stablecoins allow users to transfer any amount of value to any person in the world at low cost and with nearly instant settlement. Stablecoins also provide US policymakers with a significant opportunity to reinforce global dollar dominance in international trade by spreading dollars far and wide. We support US policies that recognize the transformative potential of stablecoins and enable American companies and citizens alike to enjoy the benefits they offer.
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