What is a qualifying stablecoin?

A qualifying stablecoin is a type of digital asset that meets these three conditions:

• Tracks a currency: It is designed to stay equal in value (1:1) with a real-world currency issued by a government or central bank (like the U.S. dollar).

• Has a stabilization system: It uses a reliable method, such as reserves or algorithms, to keep its value steady.

• Widely accepted for payments: It can be used as a payment method by individuals or businesses other than the company that created it.