The European Central Bank (ECB) has warned EU finance ministers that the rapid expansion of euro stablecoins could create major risks for the European banking sector and weaken the effectiveness of monetary policy. The concerns were raised during recent Eurogroup and Ecofin meetings after Brussels-based think tank Bruegel proposed easing liquidity rules for stablecoin issuers and allowing them potential access to central bank funding. According to ECB officials, the growing adoption of euro-backed stablecoins may encourage consumers to move savings out of traditional bank deposits and into… Read more






