The year 2020 won’t soon be forgotten. Despite the challenges that the COVID-19 pandemic presented on a global scale, 2020 ushered in new ways of thinking about stablecoin, a type of cryptocurrency that attempts to peg its market value to an external reference, such as a fiat currency (like the US dollar) or the price of a commodity (like gold), and has garnered much attention from tech companies, financial services institutions, and policymakers.
As we reflect on the developments related to stablecoin over the last year, we also consider the possibilities for stablecoin and its potential regulation in 2021. We divide this White Paper into the following sections: (1) concerns driving policy and regulatory efforts; (2) US legislative and regulatory developments; (3) EU and UK policy developments; and (4) our thoughts on future developments that may occur in 2021.