Stablecoins have an estimated market value of $100 billion and are the core of the digital asset exchange. The trend is a topic of great concern to governments, and they are investing a lot in keeping up with it. A November 2021 report published by the United States President’s Working Group on Financial Markets details the There are many ways to regulate stablecoins.The guidelines of the government are followed. A Survey of central banks worldwideAccording to the Bank for International Settlements, 86% of central banks have now started using central bank digital currencies. These are government-backed stablecoins. Seven of the central banks have launched CBDCs and 17 others are still in pilot. AccordingThe Atlantic Council CBDC tracker.

As with all cryptos, stablecoins use blockchain technology to facilitate peer-to–peer (P2P), digital transactions. This gives them the bearer instrument and final-settlement property of cash. The underlying infrastructure is decentralized and promises faster transactions, reduced settlement costs, greater transparency, and better control for the end-users.