🥷 ECB Pushes Back on Looser Euro Stablecoin Rules, Citing Banking Risks
According to Reuters, the European Central Bank opposed proposals to ease rules for euro stablecoins, citing concerns that broader issuance could reduce bank lending and complicate interest-rate control.
Central bankers, including ECB President Christine Lagarde, expressed worries that stablecoins might drain bank deposits and weaken lenders' funding. Brussels-based think tank Bruegel warned that stricter EU rules could push activity offshore and deepen "digital dollarization."