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    Question

    Which of the following is an advantage of stablecoins in

    digital finance?
    A High volatility compared to Bitcoin Correct Answer Incorrect Answer
    B No backing assets Correct Answer Incorrect Answer
    C Price stability through pegging to fiat or commodities Correct Answer Incorrect Answer
    D Lack of liquidity Correct Answer Incorrect Answer
    E No use in payments Correct Answer Incorrect Answer

    Solution

    Stablecoins are cryptocurrencies pegged to stable assets (USD, gold). Advantage: reduced volatility, making them suitable for remittances, DeFi, and cross-border payments. However, risks include regulatory oversight, asset-backing transparency, and systemic adoption.

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