Synthesizing Global Lessons for Stablecoin Regulation and Financial Stability

Stablecoins have moved decisively into the centre of global digital finance, emerging as payment infrastructure, liquidity instruments, and potential public-purpose digital money. Evidence shows growing global convergence around proportionate, technology-neutral, and risk-based regulation, even as significant divergences persist in implementation, supervisory capacity, and treatment of novel models such as algorithmic stablecoins. Unique opportunities and vulnerabilities face emerging markets, where stablecoins can lower remittance costs and expand financial access while simultaneously raising concerns about dollarisation and monetary sovereignty. Ethical considerations, around surveillance, identity, humanitarian use, and private-sector dependency, remain central to responsible adoption. The Commonwealth Model Law on Stablecoins provides a forward-looking blueprint for harmonised, adaptive regulation. Its principles provide the foundation for safe, inclusive, and interoperable digital money systems capable of supporting the next generation of global finance.