ECB Rejects Looser Euro Stablecoin Rules, Warns of Banking and Monetary Policy Risks

TLDR: The ECB warned that broader euro stablecoin issuance could drain bank deposits and weaken lenders’ funding capacity. Bruegel proposed easing liquidity rules and granting stablecoin firms access to ECB funding to counter dollar dominance. Euro stablecoins hold just 0.3% of total supply, while overall stablecoin market reached $300 billion in 2024. The EU’s MiCAR [...]

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