How should I explain what a stablecoin is to my grandparents?

How to Explain Stablecoins to Grandparents

Hey, I've tried talking to my grandparents about cryptocurrency before. At first, they were totally confused, but once I broke it down simply, they got it. Stablecoins aren’t that mysterious—I’ll share how I explained it using everyday analogies to make it relatable. Imagine chatting with them like this (here’s a sample script for you):

Start with the basics—skip the jargon

"Grandma and Grandpa, you know Bitcoin, right? Its price is like a rollercoaster—up one day, down the next. Stablecoins are different. They’re a type of cryptocurrency, but they’re not ‘crazy’ like Bitcoin. Their value stays steady, no wild ups and downs."

Use analogies they can picture

"Think of stablecoins as ‘digital dollars.’ Like the cash in your wallet or money in your bank account, the value stays stable—it won’t suddenly drop by half, right? Stablecoins are similar: they’re digital money stored on your phone or computer, but they’re backed by real assets to keep their value steady.

For example, one stablecoin called USDT is pegged to the US dollar. One USDT is always worth about $1. Why is it stable? Because the company behind it holds real US dollars in reserve as backup—just like when you put money in the bank, and the bank guarantees it won’t lose value."

Explain how they’re used and why they matter

"Grandma and Grandpa, why do people use stablecoins? Because in the digital world, sending money is fast—no bank queues or worrying about exchange rates jumping around. Say you want to send money to relatives abroad: with stablecoins, it arrives in minutes with low fees. Plus, they use a technology called blockchain to record transactions—it’s like a super-secure ledger everyone can see, but no one can tamper with.

But I should mention: they’re not as rock-solid as bank deposits. Sometimes if the company faces issues, the value might wobble a bit. Still, overall, they’re way more reliable than other cryptocurrencies."

End with interaction to keep it engaging

After explaining, ask them: "Grandma and Grandpa, does this remind you of food stamps or passbooks from back in the day?" That way, they join the conversation—it feels like chatting, not a lecture.

This is how I explained it to my grandparents—they even asked how to buy some afterward (haha, though I told them to learn more first). If your grandparents are curious about money stuff, this approach should work. Remember: speak slowly, avoid English acronyms, and gesture like you’re showing a phone app. Give it a try!