TechFlow news, May 23: According to Reuters, the European Central Bank (ECB) opposed proposals to promote more euro-denominated stablecoins at the EU finance ministers’ meeting, arguing that relaxing liquidity requirements for stablecoin issuers—or even granting them access to ECB funding—could undermine bank deposit stability, constrain bank lending, and complicate interest rate policy implementation.
The proposal was put forward by Bruegel in its meeting documents, aiming to expand the current market dominated by U.S. dollar–denominated stablecoins. ECB President Christine Lagarde has previously taken a cautious stance toward euro stablecoins, favoring instead tokenized commercial bank deposits. The report also notes that the EU is reviewing the Markets in Crypto-Assets (MiCA) regulation, which entered into force in 2024, while the United States passed the more permissive GENIUS Act in 2025.
