Pegged currency

This is a currency where the value is designed to remain the same as a designated asset. In the cryptocurrency world, the term “pegged” usually stands for a digital currency with its price connected directly to the price of a stable conventional currency, such as USD or EUR. A pegged cryptocurrency is also referred to as a stablecoin.

Tether is one of the most popular pegged cryptocurrencies. Here are three examples of Tether being pegged to conventional currencies: 

  • 1 USDT is pegged to 1 USD. 
  • 1 EURT is pegged to 1 EUR.
  • 1 CNHT is pegged to 1 CNH.

 

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