ECB Sounds Alarm on Stablecoin Threat to Euro Dominance
The European Central Bank warns dollar-pegged stablecoins—now a $300 billion market—could undermine monetary sovereignty. MiCAR regulations aim to curb risks, while the digital euro project offers a public alternative.
Private stablecoins, 95% dollar-denominated, risk diverting €17 trillion in eurozone deposits away from traditional banks. This capital flight could cripple lending capacity, forcing ECB intervention to preserve financial stability.