The post ECB Warns: Stablecoins Could Shift Interest Rates appeared first on Coinpedia Fintech News
Olaf Sleijpen, Dutch central bank governor and ECB member, warned that the rapid growth of U.S. dollar stablecoins, now worth over $300 billion after a 48% rise this year, could risk Europe’s economy. He cautioned that if there’s a rush to redeem stablecoins backed by U.S. Treasuries, it might cause quick sell-offs, threatening financial stability worldwide. Sleijpen said such a scenario could force the ECB to adjust its interest rate policy to handle the fallout, impacting inflation and the broader economy.