Glossary · Mechanics
Stablecoin
Also known as stablecoins
A stablecoin is a crypto token pegged at roughly 1:1 to a fiat currency — like USDC, EURe or GBPe — so its value stays steady instead of swinging with the market.
A stablecoin is a token designed to hold a fixed value — one USDC aims to always be worth one US dollar, one EURe one euro. It lets you keep money on a blockchain without riding the price swings of a coin like Bitcoin or ETH.
Why it matters: cards lean on stablecoins so you spend a steady, predictable value at the till. If you paid straight from a volatile coin, a 5% drop between tapping your card and the charge settling would quietly change what your coffee cost. Spending a stablecoin pegged to your home currency sidesteps that, and it makes the maths on rewards and fees legible. The catch is that a peg is a promise, not a law of nature — a poorly-backed stablecoin can slip below its target.
For example: Gnosis Pay spends EURe, GBPe and USDCe 1:1 with the fiat amount, straight from your own self-custodial wallet — tap for 10 euros, 10 EURe leaves the account. The Coinbase debit card is free to spend in USD and USDC, while spending other crypto historically triggered a conversion fee, so holding a stablecoin is also the cheapest way to pay.