2. Problem Statement

In today's financial landscape, both traditional fiat currencies and cryptocurrencies are facing significant challenges that hinder their ability to preserve purchasing power over time and provide stability for users. These challenges stem from inherent flaws in existing systems and technologies, leading to erosion of value, volatility, and mistrust among participants.

As demonstrated in the chart below, money earned today and kept in a savings account in USD - the reserve currency of the world - will depreciate in value over an individual's lifespan. Such depreciation in value is typical for all fiat currencies and, hence, stablecoins.