Expert Warns of Potential Economic Disruption from Stablecoin Surge

European officials are increasingly concerned about the potential for economic instability caused by the rapid growth of stablecoins. Olaf Sleijpen, Governor of the Dutch central bank, highlights the significant impact these digital currencies could have on the financial system and its role in macroeconomic stability. If stablecoin values fluctuate, users may be forced to sell their underlying assets quickly, potentially triggering a cascading effect across markets, which could worsen inflation and economic instability.