@zoezoe

Stablecoins can support floating exchange rates and automatic conversion with local fiat currencies. By leveraging blockchain technology, stablecoins can be programmed to adjust their value based on market-driven floating rates, rather than being pegged to a single asset like USD. Smart contracts enable real-time conversion between stablecoins and local fiat, using oracles to fetch accurate exchange rates. This allows seamless, borderless transactions with minimal fees, ensuring users can trade or pay in their preferred currency. For example, a stablecoin could dynamically adjust to reflect EUR or CNY rates, facilitating instant settlements in global commerce. However, volatility risks and regulatory compliance must be addressed to ensure stability and trust.

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