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Stablecoins: types, advantages, challenges and regulatory considerations

Over the recent months there has been a proliferation in the development of stablecoins, namely crypto-assets pegged in value to fiat currency or other assets. While the price fluctuations of other crypto-assets make them perhaps more attractive for speculation, the relative stability of stablecoins offers the possibility of cryptocurrencies being adopted for use in everyday transactions.

In this publication with fintech expert Hazem Danny Al Nakib, we not only provide an overview of the main stablecoin models, but we also explore the potential advantages of stablecoins and discuss how these need to be balanced against regulatory and policy goals covering matters such as consumer protection, financial services regulation, market integrity and financial crime.