Russia, alongside other countries, is currently discussing the economic and legal nature of stablecoins and approaches to their regulation. The Bank of Russia has analyzed international trends in the field of stablecoins in its analytical report.
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. Typically, stablecoins are pegged to a fiat currency, but they can also be pegged to other assets such as gold, other commodities, cryptocurrencies, or a basket thereof. Presently, 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 towards stablecoins is still evolving globally, with no general definition or common regulatory approaches adopted yet. International organizations and national regulators are actively studying this phenomenon to forge their stance while balancing opportunities and risks. Current analysis shows that stablecoins are recognized as legal tender almost nowhere in the world because they are not as universally applicable as national currencies. However, they can be regarded as an investment facility and used in cross-border payments.
Regarding 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 developing specific laws or applying existing regulations. Some stablecoins resemble digital rights or digital currencies. Given that the regulation of these assets is actively developing in Russia, it might also be applied to stablecoins. However, this issue requires comprehensive discussion.
The Bank of Russia looks forward to readers’ comments on this subject matter, including on the issues proposed in the analytical report.
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