The European Central Bank (ECB) warned that euro stablecoins could lead to a decrease in bank loans and a burden on monetary policy operations. According to Reuters, Bruegel, a Brussels-based economic think tank, proposed easing liquidity regulations for cryptocurrency issuers and providing liquidity support from the ECB as ways to strengthen the competitiveness of euro stablecoins at the EU financial policy meeting. Central bank officials, including ECB President Christine Lagarde, immediately expressed their opposition. This is because such measures could destabilize bank deposits and weaken the economically important banking sector and the central bank's ability to adjust interest rates.
