The European Systemic Risk Board (ESRB) has proposed a ban on multi-issuance stablecoins, supporting the European Central Bank's (ECB) initiative to limit their use. This recommendation aims to safeguard European monetary sovereignty amid concerns over foreign influence. The ESRB's proposal targets stablecoin providers like Circle and Paxos, preventing them from issuing identical tokens across different jurisdictions while maintaining reserves in only one EU member state. ECB President Christine Lagarde has expressed concerns about U.S.-backed stablecoins, citing risks to legal, operational, and financial stability. An ECB presentation noted that these stablecoins often hold reserves in dollar-denominated assets outside the EU, potentially undermining the bloc's financial control. However, the proposed ban may encounter opposition from the European Commission, which has previously endorsed the multi-issuance model.