Stablecoin
Also known as: USDT, USDC, stable coin
A crypto asset designed to hold a steady value, usually pegged to a fiat currency like the US dollar — but still treated as crypto for tax.
Definition
A stablecoin aims to maintain a stable price, typically by pegging to a fiat currency (USDC, USDT) or via algorithmic mechanisms. Despite the stable peg, stablecoins are crypto assets for tax: swapping crypto for a stablecoin is still a disposal, and converting a stablecoin back is another disposal. Because they are dollar-denominated, rand value can drift with the exchange rate even when the dollar peg holds.
Example
You swap ETH for USDC to lock in value. That swap is a disposal of ETH; later swapping USDC back to ETH is a disposal of the USDC.
Jurisdiction notes
- South Africa: Swapping into or out of a stablecoin is a disposal in South Africa; rand value can move with the USD exchange rate even at peg.