Soft Peg

« Back to Glossary Index

It is a method of retaining the value of a currency within a specific range against a reserve currency by making use of an exchange rate regime. However, there are other peg approaches as well such as the flexible peg and the hard peg. The basic difference between the soft peg and the hard peg is that the former permits for the limited flexibility in the monetary policy. The main focus is to permit the governments to deal with the fluctuations. The most known soft-pegged cryptocurrency is the Chinese Yuan that had been pegged to the Dollar from 1994 till 2005.

« Back to Glossary Index

Check Also


Coinbase Base Launch: A New Milestone In The Crypto Industry

Coinbase, the world’s leading cryptocurrency exchange, has recently launched a new feature called BASE, aimed …

AdBlock Detected

Looks like you are using an ad-blocking browser extension. We request you to whitelist our website on the ad-blocking extension and refresh your browser to view the content.