The European Central Bank expressed its worries on Monday about the fast-growing dollar-denominated stablecoins because they threaten to reduce European monetary independence. ECB adviser Jürgen Schaaf published a blog post which stated that U.S.-pegged digital tokens from Tether and Circle could increase euro area borrowing costs while reducing ECB policy control and strengthening European dependence on U.S. Schaaf demanded immediate work on the digital euro and euro-based stablecoins to fight against the growing trend. Schaaf emphasized the need for enhanced international cooperation on stablecoin regulation to stop regulatory arbitrage and solidify dollar dominance in digital payment systems.
Would you like to try out trading with an Expert Advisor?
