Stablecoins could siphon off euro zone bank deposits, ECB warns

Stablecoins could siphon off euro zone bank deposits, ECB warns

ECB Warns Stablecoins Like Tether's USDT, Circle's USDC Could Pose Global Financial Risks

The EU’s central bank says stablecoins draw value from eurozone banks and could pose a risk to global financial stability.

Stablecoins Could 'Pose Stability Risks,' ECB Says in Latest Warning - WorldNL Magazine

In brief The European Central Bank has again issued a warning over stablecoins. Major companies and banks have shown interest in issuing the tokens. U.S. President Donald Trump this year signed a law establishing a regulatory framework for stablecoins. First they were dubbed "confusing." Then they were described as "susceptible to vulnerabilities." Now, following the surge in interest in stablecoins, the European Central Bank reiterated its warn…

Rising Stablecoin Use Poses Funding Risks To European Banks, ECB Says » News.ng

The European Central Bank has raised fresh concerns about the rapid growth of stablecoins, cautioning that their expanding role in global finance could eventually drain deposits from eurozone banks and introduce new risks to both European and U.S. markets. In its latest assessment, the ECB noted that the stablecoin sector—now valued at more than $280 billion—has become increasingly concentrated, with Tether’s USDT and Circle’s USDC controlling n…