A peg is mostly done to the US Dollar (USD). Here a country sets the value of the currency at a fixed exchange rate to the dollar.
So while the value of the USD will fluctuate, since it is floating, the pegged currency will be stable relative to the USD.
In cryptocurrency, we see stablecoins being *pegged to different asset classes. The most common is the USD but other pegs are forming. We also see algorithmic stablecoins being experimented with, pegging the native coin on a blockchain.
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