From the beginning of January 2020 to the end of April 2022, the total market capitalisation of the stablecoin market grew from approximately US$6 billion to US$181 billion, approximately 3,000%. There is intense public and governmental focus around the world on stablecoins, but to many, the product is an enigma.
Given the risks to consumers and financial stability associated with stablecoins, comprehensive legal and regulatory frameworks are needed. The frameworks needed are ones that are flexible in order to adapt to the continued innovations in the sector; ones that balance investor/consumer protection and financial stability with the need to encourage, and not stifle, innovation, create businesses, facilitate job growth and wealth creation and expand financial inclusion.
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