The European Central Bank opposes relaxing euro stablecoin regulations, claiming it could weaken bank lending and interest rate control

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Golden Finance reports that, according to Reuters, the European Central Bank opposed the proposal to promote more euro stablecoins at the EU finance ministers' meeting, believing that relaxing liquidity requirements for stablecoin issuers or even allowing them access to European Central Bank financing could weaken bank deposit stability, suppress bank lending, and increase the difficulty of interest rate regulation.
The proposal was put forward by Bruegel in the meeting document, aiming to expand the current market dominated by US dollar stablecoins. ECB President Christine Lagarde has previously been cautious about euro stablecoins and prefers a tokenized commercial bank deposit scheme.
The report also states that the EU is reviewing the MiCA regulation set to take effect in 2024, while the US passed the more lenient GENIUS Act in 2025.
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