ECB warns EU finance ministers that easing euro stablecoin rules would weaken banks: Reuters
The Block
The ECB rejected proposals to loosen euro stablecoin rules, fearing they would threaten banking stability and credit capacity.Summary
The European Central Bank (ECB) has pushed back against a proposal from the think tank Bruegel that sought to ease liquidity requirements for euro-denominated stablecoins. ECB President Christine Lagarde and other officials argued that allowing stablecoin issuers to compete for deposits would raise funding costs for commercial banks and potentially destabilize the financial system. While proponents warned that strict rules might accelerate 'digital dollarization' and hinder competitiveness compared to the U.S. market, the ECB remains committed to its own digital euro project and tokenized bank deposits as the preferred route for financial innovation.
(Source：The Block)