Stablecoins: regulators’ attitude to them around the globe

Initially, stablecoins were seen as a response to the excessive volatility of cryptocurrencies and the increased need for a more stable payment facility in the crypto industry. As a rule, stablecoins are pegged to a fiat currency, but they can also be pegged to other assets (gold, other commodities, cryptocurrencies, etc.) or a basket thereof. Currently, there is a wide range of stablecoin types that may be similar to various financial instruments and even combine some of their features.

The attitude to stablecoins is still shaping up around the world, with no general definition or common approaches to their regulation adopted as yet. International organisations and national regulators are actively studying this phenomenon in order to forge their stance, while balancing between opportunities and risks. The current situation analysis shows that stablecoins are recognised as legal tender almost nowhere in the world, because they are not as universally applicable as national currencies are. However, they can be regarded as an investment facility and can also be used in cross-border payments.

As regards regulation, most countries tend to adhere to the ‘same activity, same risks, same regulation’ principle when developing relevant frameworks. In practice, this can involve either the development of specific laws or the application of already existing regulations. Some stablecoins resemble digital rights or digital currencies. Given that the regulation of the above assets is actively developing in Russia, it might also be applied to stablecoins. However, this issue requires a comprehensive discussion.

The Bank of Russia looks forward to readers’ comments on this subject matter, including on the issues proposed in the analytical report.