ECB Official Warns Stablecoin Growth Could Undermine Monetary Policy

A European Central Bank Governing Council member has warned that rapid stablecoin expansion poses systemic risks to monetary policy. Olaf Sleijpen of the Dutch central bank noted dollar-pegged stablecoins have grown nearly 50% this year to over $300 billion. Large-scale redemptions could force reserve liquidations and destabilize bond markets, he said.