🇪🇺 ECB Blocks Euro Stablecoin Push
ECB warned EU finance ministers that expanding euro stablecoins would weaken banks and complicate interest rate control.
Key Points:
🔹 Bruegel proposed easing rules and ECB funding access for euro stablecoin issuers
🔹 Lagarde and central bankers pushed back hard
🔹 Stablecoins pull deposits out of banks, raising funding costs
🔹 ECB refused to act as backstop for stablecoin firms
The Reality Check:
🔹 Europeans drive 38% of global stablecoin transactions
🔹 Euro stablecoins are only 0.3% of total supply
🔹 EURC ranks just 12th globally
