ECB's Warning on Stablecoins Looks Overblown — Market Talk
The European Central Bank's concerns about the rapidly expanding stablecoin market seem overdone, IG analyst Chris Beauchamp says in a note. ECB policymaker Olaf Sleijpen told the Financial Times that the stablecoin market, dominated by dollar-pegged tokens, could create risks for financial stability, the economy and inflation. He said that it could force the ECB to adjust monetary policy. "This feels somewhat overblown - the scenario requires several unlikely events to align, and likely reflects the ECB's struggle to justify digital currency plans that have failed to match the market appeal of dollar-denominated alternatives," Beauchamp says. ([email protected])