TechFlow News, June 1: According to The Block, Isabel Schnabel, a member of the Executive Board of the European Central Bank (ECB), stated that the expanding adoption of stablecoins exacerbates risks to financial stability, monetary policy, and the international monetary order. Central banks should respond to these challenges by strengthening regulation and advancing central bank digital currencies (CBDCs), such as the digital euro.
She noted that dollar-denominated stablecoins could further entrench the U.S. dollar’s dominance through network effects. The global stablecoin market capitalization has approached $300 billion, with USDT and USDC accounting for approximately 90% of the total market. Schnabel also emphasized that the digital euro would help ensure public access to public money and reduce Europe’s reliance on non-European payment service providers.
