The problem stablecoins try to solve

Bitcoin is remarkable — but it can swing 10% in a day. If you accept $50 in Bitcoin for a haircut and the price drops 15% overnight, you received less than $43. For a business running on thin margins, that uncertainty is a real problem.

A stablecoin is a cryptocurrency pegged to a stable asset — almost always the US dollar. One USDC is always worth $1.00. One USDT is always worth $1.00. The price doesn't move. A stablecoin doesn't move: $50 in USDC is $50 in USDC — today, tomorrow, next week.

Hodl says
Stablecoins dodge volatility by trusting a company to hold real dollars behind every token. OrangeTill takes a different route: accept Bitcoin, price in dollars, and auto-convert the moment a payment lands — dollar-stable results without handing your trust to a stablecoin issuer.

How a stablecoin stays at $1

Different stablecoins use different mechanisms to maintain their peg:

Fiat-backed (USDC, USDT)
Most common
A company holds real US dollars (or Treasury bills) in a bank account equal to every stablecoin in circulation. You hold 100 USDC, there are 100 real dollars backing it. You can redeem at any time. This is the simplest and most widely trusted model.
Crypto-backed (DAI)
Decentralized
Backed by other cryptocurrencies held in smart contracts, over-collateralized to absorb price swings. More decentralized than fiat-backed, but more complex. DAI is the most prominent example.
Algorithmic stablecoins
Higher risk
Use algorithmic mechanisms to expand or contract supply and maintain the peg. The collapse of TerraUSD (UST) in 2022 — which lost its peg catastrophically — demonstrated the risks. Most merchants should avoid algorithmic stablecoins entirely.

USDC vs. USDT: the two you'll hear about

USDC (USD Coin) is issued by Circle, a US-regulated financial company. It's audited monthly by independent accounting firms and is considered the most transparent and trustworthy stablecoin for US businesses. USDC runs on multiple blockchains — Ethereum, Solana, Base, and others.

USDT (Tether) is the largest stablecoin by market cap and the most widely held globally. It has faced some historical scrutiny over its reserve disclosures but has maintained its peg through multiple market crises and is deeply embedded in global crypto markets.

For US merchants, USDC is generally the cleaner compliance choice. For reaching the broadest global customer base, USDT has wider adoption. OrangeTill accepts neither, though — it stays focused on Bitcoin and the Lightning Network.

"Stablecoins are digital dollars with crypto's settlement speed — convenient, but only as trustworthy as the company holding the reserves."
How many small business owners describe the experience

What stablecoins get right

🍊 Why OrangeTill uses Bitcoin instead

Stablecoins solve volatility by adding a middleman — a company you trust to hold real dollars and honor every redemption. OrangeTill removes that trust entirely.

You accept Bitcoin (instant over the Lightning Network), price every sale in dollars, and auto-convert to dollars the moment payment lands. You get the dollar-stable result stablecoins promise — with no issuer, no reserves to audit, and no peg that can break.

Can a stablecoin lose its peg? ▼
Yes — it has happened. TerraUSD (UST) collapsed to near zero in May 2022 in one of crypto's most notable failures. However, fiat-backed stablecoins like USDC and USDT have maintained their pegs through every major market crisis, including the 2022 bear market, the FTX collapse, and multiple banking turbulences. A brief de-peg of USDC occurred during the Silicon Valley Bank crisis in March 2023, but it recovered within days. For day-to-day merchant use with immediate conversion to dollars, the risk is low — but it exists.
Do I owe taxes when I receive stablecoins? ▼
The IRS treats stablecoin receipts the same as any cryptocurrency receipt — as income at fair market value at time of receipt. Since 1 USDC = $1.00, receiving 50 USDC is equivalent to receiving $50 in income. Conversion to dollars doesn't create an additional taxable event since there's no gain. Always confirm with a tax professional for your specific situation.
Is USDC regulated? ▼
Circle (USDC's issuer) operates under US money transmission licenses and is subject to regulatory oversight. USDC reserves are held in cash and short-term US Treasury bills, with monthly attestations by independent accounting firms. It is the most regulated and transparent major stablecoin available — though stablecoin regulation in the US is still evolving, with new legislation expected in 2025-2026.

Dollar-stable results — no stablecoin required.

Want dollar-stable results without trusting a stablecoin issuer? OrangeTill does it with Bitcoin and the Lightning Network — instant, final, and no percentage fees.

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