![Crypto Terms Glossary: What is Hard Peg? Crypto Terms Glossary: What is Hard Peg?](/img/76/673/what-is-hard-peg-sm.webp)
A hard peg is a specific type of exchange rate model that is applied to a currency in order to maintain its value relative to a reserve currency or basket of currencies. As they relate to blockchain, a hard peg is usually applied to stablecoins to maintain their peg to a fiat currency like the U.S. dollar, and typically do not allow for much flexibility to deal with economic shocks and fluctuations.