US President Donald Trump last month signed the Guiding and Establishing National Innovation for US Stablecoins Genius Act into law. Among other things, the signature piece of legislation establishes the statutory processes any American entity wishing to create and issue a stablecoin must follow.
European regulators have now signalled their intention to establish legislation of their own to govern stablecoins, while other countries, including China - the world's second largest economy - are already experimenting with CBDCs.
"The Sarb is closely monitoring market developments related to stablecoins, including the finalisation of legal frameworks in other jurisdictions on the approach to them," the Reserve Bank said in e-mailed response to questions from TechCentral.