A stable coin is a type of crypto asset that rather than serving primarily as a vehicle for speculation, for betting,

essentially, meant to go up and down in price so folks who buy low can someday sell high,

stable are meant to remain stable, to not go up, not go down, and to stick as closely as possible

to the value of some other asset. Most stable coins are meant to remain pegged to the US dollar.

There are a few that are instead pegged to euros or other state-backed fiat currencies.

Still others are pegged to the value of other crypto assets, though these are fewer and farther between,

as the purpose of most staple coins is to be the interstitium, the connective

tissue, between other sorts of assets, especially crypto assets.

So the main use case of stable coins tends to be as a means of exchange between these other

assets and for the purpose of storing value in between investment periods. You might cash out your Bitcoin

haul, a crypto asset that's more often used for speculation purposes, and that cash out might

be into a stable coin rather than directly into USDs or euros. The benefit of this approach

is that those stable coins keep your cashed out value in the

crypto market, which makes it easier to then put that value back into other crypto assets without

having to worry about transfers to and from banks and other centralized financial institutions

of that kind. But it can also have tax benefits, especially if your local tax laws don't take non-fayet currency value into full account.

There's a chance then that you can cash out a million dollars worth of Bitcoin into a stable coin, and because you own that money in stable coins rather than dollars, the IRS or local tax agency doesn't see it.

It's not legible, or there are no set laws as to how they deal with it, and thus, you do not pay

taxes on that income, or don't pay as much as you would on real deal dollars.

Many stable coins are also backed by assets that are not directly correlated to the fiat

currencies to which they are pegged, so it's theoretically possible to benefit from owning

USD-pegged stable coins that are backed by a combination of bonds, dollars, and crypto assets,

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