LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory Algorithmic stablecoins attempt to maintain value without full asset backing. What risk do they pose to monetary stability?

Question

LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory Algorithmic stablecoins attempt to maintain value without full asset backing. What risk do they pose to monetary stability?

Answer

They automatically stabilize demand for fiat currency.

Answer

They strengthen the central bank’s ability to manage the money supply.

Answer

They can collapse under market pressure, disrupting confidence in digital transactions

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LG 1. Knowledge Comprehension LO 1.1. Generate knowledge of core concept and...

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