Stablecoin Bank Runs: Dutch Warning Sparks Concern for Europe’s Financial Future

The stability of Europe’s financial system is under threat as the potential for a large-scale ‘bank run’ in stablecoins comes into focus, with the Dutch Central Bank issuing an urgent warning to the European Central Bank (ECB). A rapid redemption of digital tokens backed by assets like the US dollar could trigger devastating consequences. This scenario raises concerns about traditional banking systems’ ability to cope with such unprecedented volatility.