#reservebacking

By Savings UK Ltd

Stablecoins — crypto-assets designed to maintain a stable value by being pegged to fiat currencies or other assets — have grown from a niche innovation into a vital part of digital finance. Today, stablecoins like USDC and Tether (USDT) process billions in daily transfers, powering much of crypto trading, settlement, and payments. Their rise has caught the attention of regulators worldwide, who now face a pressing challenge: how to embrace the benefits of stablecoins without exposing consumers and the wider financial system to unnecessary risks.

This article explores the current debates surrounding stablecoin regulation, the different approaches emerging globally, and what businesses and policymakers should consider going forward.

Why regulators care now

Stablecoins have evolved far beyond being simple tools for traders. They are increasingly used for cross-border payments, remittances, and even as a store of value in countries with volatile local currencies.