Part 2/9:
Stable coins, a vital part of today’s cryptocurrency ecosystem, are cryptocurrencies pegged to fiat currencies, like the U.S. dollar, to maintain stable value. Scott highlights two significant players—Tether (USDT) and USD Coin (USDC)—noting that despite their intention to facilitate liquidity and ease of trading, they are fraught with risks, including a lack of transparency in reserve holdings which raises questions about their reliability.