ECB Warns of Stablecoin Risks to Traditional Finance

The European Central Bank (ECB) has raised concerns about the potential destabilizing impact of large-scale runs on stablecoins, urging for tighter regulation and stricter oversight of these digital assets. The ECB fears that a major disruption in the stablecoin market could trigger cascading shocks in traditional financial systems, highlighting the crucial link between cryptocurrencies and conventional finance.