Olaf Sleijpen, a member of the European Central Bank's Governing Council and the head of the Dutch central bank, has issued a warning about the potential risks posed by stablecoins. Sleijpen highlighted that a run on stablecoins could force the ECB to reconsider its interest rate path, with implications extending beyond financial stability to affect the broader European economy and inflation.
Sleijpen noted that the market for dollar-pegged stablecoins has surged by 48% this year, surpassing $300 billion, particularly following regulatory easing in the United States. He cautioned that a redemption wave in stablecoins, which are heavily backed by U.S. Treasury assets, could lead to a rapid sell-off, posing systemic risks to global markets.
ECB Official Warns Stablecoin Run Could Impact Eurozone Rates
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