What are stablecoins, cryptocurrency’s latest craze?

There’s a new form of cryptocurrency gaining traction among fans of digital cash.

Unlike bitcoin, which has seen its price swing wildly from as high as $19,000 last year to its current level hovering around $6,200, this emerging class of cryptocurrency aims to maintain a stable price — one, single U.S. dollar — at all times.

A cryptocurrency whose price never fluctuates might sound nonsensical, particularly to entry-level traders who want to profit off a cryptocurrency’s appreciation. But many in the industry say the rise of “stablecoins” has in fact been instrumental for active investors — and could represent a crucial steppingstone to the future of money.

Bitcoin was hailed initially as a form of digital cash that could be used to purchase real-world goods and services. But in practice, the currency’s…