Stablecoins Threaten Europe’s Monetary Sovereignty: Dutch Central Bank Governor Warns

A new concern has emerged regarding stablecoins linked to U.S. assets and their impact on the Eurozone’s monetary system. Olaf Sleijpen, governor of the Dutch central bank, warns that these dollar-backed tokens could expose Europe to risks tied to fluctuating U.S. interest rates. The increasing scale of stablecoin usage is raising red flags for the European Central Bank (ECB), with Sleijpen highlighting a potential shift similar to past experiences impacting global central bank autonomy. He emphasizes that rapid growth in stablecoin trading volumes, exceeding $300 billion this year, creates a link between American monetary policies and the Eurozone’s economy.