Which statement is false regarding stabelcoins?

A. Stablecoins are usually pegged to a fiat currency like the US dollar (USD), euro (EUR), or a commodity like gold. They can be exchanged for fiat money.

B. Stablecoins can be used as a medium of exchange, a store of value, or a unit of account, similar to traditional fiat currencies.

C. Stablecoins can be either centralized or decentralized.

Correct Answer: A

A is false. They cannot be exchanged for fiat money and do not have any legal or regulatory backing.

B is true. Stablecoins also facilitate easier trading and liquidity within cryptocurrency exchanges, as traders can hold stable value without the need to convert to fiat currencies.

C is true. Centralized stablecoins are issued and managed by a central entity, while decentralized stablecoins operate on blockchain networks with smart contracts, allowing for more decentralization and community governance.

It's important to note that while stablecoins aim to maintain stability, there can still be risks involved. Factors such as insufficient collateralization, regulatory changes, or technical vulnerabilities can impact the stability of a stablecoin.