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Why Are Stablecoins Inherently Fungible Assets?

Designed as a stable medium of exchange (1:1 peg), every unit must be identical and interchangeable, making them ERC-20 compliant.
Greeks.Live16.11.25

Why Are Stablecoins Inherently Fungible Assets?

Stablecoins are designed to maintain a stable value, typically pegged 1:1 to a fiat currency like the US Dollar. Since the primary goal is to function as a reliable medium of exchange, it is essential that every unit is identical and interchangeable ▴ meaning any one USDC is treated the same as any other USDC.

This characteristic makes them inherently fungible and thus ideal for the ERC-20 standard.

What Is the Concept of “Fungibility” in the Context of ERC-20?
How Does a Token Standard like ERC-20 Differ from ERC-721?
How Does True Fungibility Benefit a Currency?
How Does the ERC-721 Standard Differ Fundamentally from ERC-20?

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