ECB Council Member Warns Stablecoin Runs Could Force Interest Rate Adjustments

Olaf Sleijpen, President of the Dutch Central Bank and member of the ECB Governing Council, warned that a run on stablecoins could compel the European Central Bank to recalibrate its interest rate path, the Financial Times reported on November 17. Sleijpen noted that U.S. dollar-denominated stablecoins have surged 48% this year to exceed $300 billion, accelerating expansion amid looser U.S. regulatory oversight. Mass redemptions of stablecoins backed by U.S. Treasuries could trigger rapid sell-offs of underlying assets, posing systemic risks to global markets and potentially affecting European economic conditions and inflation beyond financial stability concerns, he stated.