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Fiat-backed stablecoins usually have a decimal of 6 while fiat currencies only need a decimal of 2.

Is it necessary to have 6 for fiat-backed stablecoins and why?

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while fiat currencies only need a decimal of 2

In the consumer world maybe, but in the financial world it's usual to use more than two.

For example, in traditional trading, movements in the currency exchange markets are measured in "pips" - or "percentage in point" - which is one-hundredth of one percent, or a value to the fourth decimal place (0.0001).

Further, there are 10 factional pips to a whole pip, meaning prices in traditional markets can be given to 5 decimal places.

When considering the above, having ERC20 stablecoins (i.e. USDC, USDT) use 6 dp makes slightly more sense.

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