🇪🇺 ECB warns: stablecoins could hit European banks
The European Central Bank said that the growth of stablecoins could weaken the eurozone's banking system. As their popularity increases, some funds are moving from deposits to digital wallets, which reduces banks' ability to lend to the economy.
The regulator also points to a risk for monetary policy: stablecoins could change the mechanism of interest rate transmission and make the banks' response less predictable.
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🇪🇺 ECB warns: stablecoins could hit European banks
The European Central Bank said that the growth of stablecoins could weaken the eurozone's banking system. As their popularity increases, some funds are moving from deposits to digital wallets, which reduces banks' ability to lend to the economy.
The regulator also points to a risk for monetary policy: stablecoins could change the mechanism of interest rate transmission and make the banks' response less predictable.