Mars Finance news: The European Central Bank (ECB) rejected a proposal to loosen regulation on euro stablecoins, saying these measures are too risky and could harm financial stability and the transmission of monetary policy. Bruegel suggested at an informal meeting of EU finance ministers in Nicosia, Cyprus, that liquidity requirements for stablecoin issuers should be lowered and that they should be allowed to obtain ECB funding when necessary to counter the market dominance of dollar stablecoins and avoid “digital dollarization.” But officials, including Central Bank Governor Lagarde, strongly opposed the idea, arguing that stablecoins would make bank deposits less stable, increase banks’ funding costs, weaken lending capacity, and interfere with interest rate regulation. Although some finance ministers were mixed on the proposal, several central bank officials questioned the concept of making the ECB a stablecoin issuers’ “lender of last resort.” The EU is currently imposing strict oversight of stablecoins under the MiCAR regulations, while the U.S. passed the GENIUS Act in 2025, which adopts more lenient rules. At present, euro stablecoins account for only 0.3% of the global stablecoin supply, and Europe is also advancing the digital euro project to strengthen payment autonomy.

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ThereIsTvlInTheWind

· 2h ago

The dominance of USD stablecoins is really making Europeans anxious.

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TransparentGlassFeather

· 4h ago

Deposit outflows and financing costs, the central bank's concerns are indeed not unfounded.

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DepegDaydream

· 7h ago

Get the digital euro moving quickly; the path for stablecoins has been blocked.

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TidalShellReflection

· 7h ago

The term "digital dollarization" sounds really upsetting; Europeans are indeed anxious.

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GateUser-673fb6fa

· 7h ago

The conference in Nicosia turned out to be lonely; all proposals were rejected.

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0xLateDinner

· 7h ago

Holding up the banner of financial stability, innovation basically has no chance to thrive.

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GateUser-0c86a4c9

· 7h ago

Compared to MiCAR and the GENIUS Act, the regulatory philosophies of Europe and America are truly polar opposites.

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GateUser-665eb149

· 7h ago

In the US, easing while Europe tightens, the stablecoin landscape is about to diverge.

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MoonlightColdWallet

· 7h ago

What percentage is needed to have influence? 1%? 5%?

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GasFeeSensitivity

· 7h ago

For the euro stablecoin to take off, it must first pass the central bank's hurdle, which is difficult.

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The European Central Bank refuses to relax regulations on euro stablecoins due to concerns about increasing financing costs and interfering with interest rate management

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