Stablecoin
A crypto-asset whose value is meant to be pegged to a currency such as the US dollar or the euro. Unlike bitcoin, a stablecoin has an issuer – its value depends on the issuer keeping its reserves and remaining solvent.
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A stablecoin is a token on a blockchain that is meant to keep the same value at all times – usually one US dollar or one euro. To achieve this, the issuer holds reserves, such as bank deposits or short-term government bonds, and promises to redeem tokens at face value. Stablecoins are mainly used on crypto exchanges to switch between crypto-assets without going via a bank account.
Rules in the EU
Since 30 June 2024, the EU’s MiCAGlossaryMiCA (Markets in Crypto-Assets Regulation)The EU regulation on markets in crypto-assets. Since 30 December 2024, exchanges, brokers and custodians in the EU have needed authorisation; the last transitional period ended on 1 July 2026. MiCA regulates providers, not Bitcoin itself.On the learning path: Stage 4 · Step 2 – Choosing a provider →In the glossary → regulation has governed stablecoins. Tokens that refer to a single official currency are called e-money tokens there. Only credit institutions and electronic money institutions may issue them, and holders have a right to redemption at face value.[1] These rules don’t apply to Bitcoin, because it has no issuer.
How it differs from Bitcoin
- Issuer instead of protocol: a stablecoin is only as stable as its issuer’s reserves and solvency. If the market doubts them, it can fall below face value.
- Not scarce: the supply grows or shrinks with demand.
Tax
In Germany, swapping bitcoin for a stablecoin is a disposal – just like selling for euros. If you bought the bitcoin less than a year earlier, any gain is taxable, and a new holding periodGlossaryHolding period (speculation period)In Germany, the gain from selling privately held bitcoin is tax-free if more than one year passes between purchase and sale (§ 23 EStG, as of September 2026). Each purchase has its own holding period.On the learning path: Stage 6 · Step 3 – Bitcoin & tax →In the glossary → starts for the stablecoin.[2] As of September 2026; not tax advice. A reform is under discussion – see the reform tracker. Other countries have their own rules: Bitcoin tax around Europe shows where to look.
Related terms
These terms are closely connected.
- This termStablecoin
- AltcoinA collective term for all crypto-assets other than bitcoin. They differ greatly in purpose, technology and distribution of power – many have an issuer or were pre-allocated to founders and companies.
- MiCA (Markets in Crypto-Assets Regulation)The EU regulation on markets in crypto-assets. Since 30 December 2024, exchanges, brokers and custodians in the EU have needed authorisation; the last transitional period ended on 1 July 2026. MiCA regulates providers, not Bitcoin itself.
- CBDC (central bank digital currency)Digital money issued directly by a central bank – unlike bank balances, which are a claim against a commercial bank. 146 countries and currency areas are exploring a CBDC, but only three have launched one (as of May 2026).
- Fiat moneyMoney that isn’t backed by gold or other physical assets but rests on government decree and trust – such as the euro and the US dollar. Most of it is created by commercial banks, for example through loans.
- Digital euroA planned digital form of euro cash, issued by the European Central Bank. A pilot is planned for 2027 and a first issuance is possible in 2029 – if the EU adopts the law in 2026 (as of September 2026).
Explained in depth
These articles go into more detail:
- Deep dive · Stage 2Bitcoin, not ‘crypto’What sets Bitcoin apart from other crypto assets – a launch without a presale, no issuer, a fixed monetary policy – and why we only explain Bitcoin.
- Deep dive · Stage 2Digital euro & BitcoinWhere does the digital euro stand (as of September 2026), how does it differ from Bitcoin and what would it mean for your privacy? Neutral, with sources.
- ReferenceMiCA & regulationWhat MiCA, KMAG and BaFin mean for you: checking a licence in the ESMA register, insolvency protection, no deposit guarantee, the Travel Rule and AMLR from 2027.
More from „Money & economics“
Sources2 sources · 2 publishers
The superscript numbers in the text refer to these sources.
- Regulation (EU) 2023/1114 on markets in crypto-assets (MiCA) – Official Journal of the European Union (EUR-Lex), 31.05.2023 (accessed 28/09/2026)
- Einzelfragen zur ertragsteuerrechtlichen Behandlung bestimmter Kryptowerte (BMF-Schreiben) – Bundesministerium der Finanzen (German Federal Ministry of Finance), 06.03.2025 (accessed 28/09/2026)
This entry is for education only and is not investment, tax or legal advice.