ECB Opposes Euro Stablecoin Proposal, Cites Risks to Bank Deposits and Monetary Control

According to Reuters, the European Central Bank opposed a proposal to ease euro stablecoin requirements on May 23, citing risks to bank deposit stability, reduced lending, and complicated monetary policy implementation. The Bruegel think tank had proposed the initiative to expand the euro stablecoin market beyond current dollar-dominated offerings. ECB President Christine Lagarde has previously expressed caution toward euro stablecoins, favoring tokenized commercial bank deposits instead.
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