Stablecoins Raise Concerns in Europe, Potentially Requiring ECB Policy Adjustment

The European Central Bank (ECB) is facing pressure to adjust its monetary policy due to concerns about stablecoin risk and potential systemic financial instability in the region. Olaf Sleijpen, Governor of the Dutch central bank, warned on November 17, 2025, that large-scale runs on stablecoins could trigger significant market volatility and force the ECB to intervene. He emphasized that dollar-pegged stablecoin runs could disrupt European financial systems and necessitate policy changes or direct intervention by the ECB. The stability of these coins is considered a systemic risk within Europe due to potential liquidity shocks. 🕵️‍♂️