A fiat peg refers to a cryptocurrency, often a stable coin, that maintains a fixed value by being tied to a fiat currency like the US Dollar (USD) or Euro (EUR). For example, Tether (USDT) and USD Coin (USDC) are popular fiat-pegged stablecoins that aim to hold a 1:1 ratio with the USD. These stablecoins are designed to offer the benefits of cryptocurrencies, such as fast transfers and decentralized networks, while avoiding the volatility often associated with digital assets.
Fiat-pegged cryptocurrencies are widely used in decentralized finance (DeFi) for trading, lending, and payments, as they provide stability in a market prone to large price swings. By pegging to a fiat currency, these stablecoins provide a reliable medium of exchange and a store of value, making them attractive for users who need stability without exiting the crypto ecosystem.
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Plena Finance supports stablecoins like USDT, enabling users to trade, store, and transact with fiat-pegged cryptocurrencies through its decentralized wallet. With Plena, users can enjoy the stability of fiat-backed assets while accessing the full range of DeFi opportunities in a secure and easy-to-use platform.
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