ECB
The European Central Bank says rapid stablecoin growth could threaten euro-area financial stability despite currently limited exposure. Regulators are urged to step up monitoring and consider policy measures to limit systemic fallout.
The European Central Bank said Monday that stablecoins may siphon off important retail deposits from euro-area banks and warned a run on one of these coins could pose risks to global financial stability.
Dutch central bank governor Olaf Sleijpen warned that a run on stablecoins could force issuers to liquidate reserve assets, amplifying market stress and complicating the ECB's policy choices.
The ECB President said Bitcoin will not be included in EU central bank reserves, citing insufficient liquidity and security to meet sovereign reserve standards.
Italian banks support the ECB’s digital euro initiative but are asking for investment costs to be amortized over time, citing hefty upfront expenses. The ABI’s stance could shape implementation timelines and public-private cost-sharing models across Europe.
The ECB warns about U.S. dollar-backed stablecoins dominating the eurozone and promotes euro-based alternatives. Meanwhile, PayPal launches global crypto payments, Ethereum marks 10 years with strong gains, and BNB hits a new all-time high. Discover more trends and insights in crypto today.