ECB Warns Stablecoins Could Threaten Euro Zone Bank Deposits

The European Central Bank (ECB) has issued a stark warning about the potential destabilizing impact of stablecoin growth on global finance. In its latest Financial Stability Review, the ECB emphasized that expanding stablecoin markets could drain retail deposits from euro zone banks and pose broader risks to financial stability. While currently with limited market capitalization, stablecoins are seeing increasing adoption, particularly in crypto trading, with a significant portion of transactions involving them.