Stablecoins And The Foreign Exchange Transactions Act

The Foreign Exchange Transactions Act, Foreign Exchange, and Means of Payment

The Foreign Exchange Transactions Act is a law that regulates foreign exchange. The term "foreign exchange" refers to means of international payment, as well as securities, derivatives, and claims in foreign currency. "Means of payment" generally refers to money or other instruments that can be used in place of money to purchase goods or pay debts, and "means of international payment" are means of payment that are either denominated in foreign currencies or can be used in foreign countries. Common examples include foreign currencies such as the U.S. dollar (USD), euro (EUR), and Chinese yuan (RMB). Prepaid payment instruments that can be used overseas, such as Apple Pay and Alipay, are also considered means of international payment.