Pierre Gramegna, President of the European Stability Mechanism, has warned that stablecoins could threaten global financial stability if they lack proper guarantees and regulation. Speaking in Washington, Gramegna emphasized the need for stablecoins to operate within a framework that ensures consumer and financial safety, highlighting the potential risks if they become mainstream without the same guarantees as central bank currencies. Gramegna also noted the importance of the EU's involvement in the cryptocurrency space, pointing out that 99% of stablecoins are currently denominated in US dollars. He suggested that Europe could miss out if it does not introduce a euro-denominated stablecoin, while also expressing confidence that cash, digital currencies, and stablecoins can coexist.