Figure 18.2: Types of Stablecoins

Please also note that even if most Stablecoins have Blockchain as

the underlying technology, the associated collateral is centralized in

nature. As represented in Figure 18.3, all Stablecoins have their pros

and cons and it’s up to the organization to use one pattern over

another, as follows:

Figure 18.3: Pros and Cons of Different Types of Stablecoins

Today, the Stablecoin market capitalization has reached $133B and

still counting. As per coinmarketcap.com, Tether, USD Coin, Binance

USD, DAI, TerraUSD are some of the most popular Stablecoins with

maximum market capitalization backed by USD.

18.2.1 Pros and Cons of Stablecoins

The advantages of Stablecoins are as follows:

Private money and private transactions

Collateral gives us peace of mind

Instant processing of international and domestic payments