Stablecoin

A stablecoin is a digital currency designed to maintain a stable value relative to a reference asset, typically a fiat currency such as the US dollar or the euro.
Unlike traditional cryptocurrencies, it is specifically engineered to reduce volatility compared with non backed cryptocurrencies like Bitcoin or Ethereum. Stablecoins are often backed by asset reserves (such as fiat currencies or commodities) or governed by algorithms or entities that adjust the supply of the cryptocurrency in circulation to influence its price.
 

What are the different types of stablecoins?

There are three main categories of stablecoins:

• Asset-backed stablecoins: Backed by reserves of tangible assets such as fiat currencies or commodities.

• Algorithmic stablecoins: Use algorithms to automatically adjust supply and demand to maintain price stability, without being backed by physical assets.

• Crypto collateralized stablecoins: Backed by other cryptocurrencies used as collateral to preserve their value.
   

What are the functions of a stablecoin?

Stablecoins are commonly used in cryptocurrency trading, payment operations, and value transfers while minimizing exposure to market volatility.
They also act as a bridge between the traditional financial system and the world of digital assets. Fully collateralized, transparent, compliant with regulatory requirements, and available on public blockchains, they can provide the benefits of digital assets, such as efficiency and security, while reducing the volatility commonly associated with many cryptocurrencies.

Societe Generale–FORGE

Societe Generale–FORGE, a subsidiary of the Societe Generale group, specializes in developing financial solutions based on distributed ledger technologies such as blockchain. It issues two stablecoins: EURCV (backed by the euro) and USDCV (backed by the US dollar).