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G7 Currency Stablecoin

Definition

A G7 currency stablecoin is a digital asset pegged to a currency issued by a G7 nation. This type of stablecoin maintains a stable value by being collateralized, typically 1:1, with a fiat currency such as the US Dollar, Euro, or Japanese Yen. The reserves backing these stablecoins are usually held in traditional financial institutions and are subject to audits. Their stability makes them suitable for transactions, remittances, and as a store of value within the digital asset ecosystem.