ECB Sounds Alarm On Stablecoin Risks: Regulation Urged Amid Rapid Growth

The European Central Bank (ECB) is expressing serious concerns about the rapid growth of stablecoins, warning that their surge could destabilize traditional banking systems and pose significant financial risks. In its November 2025 report, the ECB highlights the potential spillover effects from stablecoin activity, emphasizing the urgent need for robust regulatory measures. The report underscores the systemic risks associated with inadequate regulation of these digital assets.