Stablecoins are a unique type of cryptocurrency that aim to maintain price stability by pegging their value to stable assets like fiat currencies or other stable assets, thus offering stability not typically found in the volatile cryptocurrency market. They are designed to have a fixed value, such as 1 USD, and have become increasingly popular, with their total value surpassing $30 billion, especially in decentralized finance (DeFi) applications. Stablecoins can be centralized, backed by off-chain fiat reserves, or decentralized, often over-collateralized by on-chain cryptocurrencies, requiring accurate price data to maintain their pegged value. Chainlink's oracle technology plays a crucial role in enhancing the security and transparency of stablecoin systems by providing reliable, decentralized price feeds and Proof of Reserve mechanisms, ensuring that stablecoins maintain their peg and offering real-time audits of their collateral status. Central Bank Digital Currencies (CBDCs) also fall under the stablecoin category, offering a similar stability mechanism but backed by central banks rather than off-chain reserves. Chainlink's technology thus supports the stablecoin ecosystem by delivering secure and transparent price data, which is vital for the integrity and stability of DeFi applications.