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Why stablecoins are gaining popularity

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Stablecoins — a form of cryptocurrency backed by traditional assets — are gaining traction, with the US Senate set to vote Tuesday on a bill to regulate such digital tokens.

But as stablecoins move closer to the financial mainstream, experts warn that weak regulation could leave investors and the financial system vulnerable.

What are stablecoins?

Stablecoins play a key role in crypto markets, enabling users to trade digital assets without relying on traditional banks, instead using a decentralised register known as blockchain.

Unlike volatile…

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