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.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

13 Likes

Reward
13
14
1
Share

Comment

Add a comment

DaoBackbencher

· 05-26 05:13

Lagarde's attitude is too tough; it's unlikely that the euro stablecoin will make a comeback.

View OriginalReply0

LanternSlippage

· 05-25 19:57

Bruegel's proposed plan is actually quite practical, but unfortunately the central bank isn't on board.

View OriginalReply0

ThereIsTvlInTheWind

· 05-23 13:00

The dominance of USD stablecoins is really making Europeans anxious.

View OriginalReply0

TransparentGlassFeather

· 05-23 10:54

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

View OriginalReply0

DepegDaydream

· 05-23 07:44

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

View OriginalReply0

TidalShellReflection

· 05-23 07:27

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

View OriginalReply0

HashPower

· 05-23 07:26

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

View OriginalReply0

0xLateDinner

· 05-23 07:24

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

View OriginalReply0

GateUser-0c86a4c9

· 05-23 07:17

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

View OriginalReply0

ArbitrageAnt

· 05-23 07:16

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

View OriginalReply0

Trending Topics
View More
#
PreIPOsSeason2OpenAISubscription
1.22M Popularity
#
GateDEXIntegratesWithRobinhoodChain
126.75K Popularity
#
TSMCQ2NetProfitSurges77%
221.56K Popularity
#
SummerCreationCamp
952.03K Popularity
#
USDTDepositEarningsDoublePlay
29.15M Popularity

Pinned

Sitemap

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

Trending Topics

PreIPOsSeason2OpenAISubscription

GateDEXIntegratesWithRobinhoodChain

TSMCQ2NetProfitSurges77%

SummerCreationCamp

USDTDepositEarningsDoublePlay

Pinned