ECB Urges Digital Euro as US Stablecoin Adoption Rises

The European Central Bank (ECB) is sounding the alarm about the growing use of dollar-pegged stablecoins within the eurozone, advocating for the development of a digital euro to safeguard monetary sovereignty. Executive board member Piero Cipollone warns that the increasing adoption of these stablecoins poses a significant risk to the euro’s dominance in cross-border payments and could potentially lead to a loss of euro deposits to the US. )