ECB Warns Stablecoin Growth Could Disrupt Monetary Policy
The European Central Bank has raised alarms over the $300 billion stablecoin market's potential to destabilize global finance. Olaf Sleijpen, a governing council member, highlighted how mass redemptions of dollar-pegged tokens could trigger Treasury sell-offs, forcing central banks to intervene with unplanned rate adjustments.
Stablecoins' 48% expansion this year now poses systemic risks beyond crypto markets. The ECB specifically warned that rapid outflows from these assets could distort monetary policy transmission mechanisms, complicating inflation control efforts across economic sectors.