**ECB Warns: Stablecoins Could Shift Interest Rates**
U.S. dollar stablecoins, now valued at over $300 billion following a 48% increase this year, could pose risks to Europe’s economy.
The European Central Bank (ECB) has expressed concerns that a sudden rush to redeem stablecoins backed by U.S. Treasuries might trigger rapid sell-offs. Such movements could threaten financial stability on a global scale.
ECB official Sleijpen cautioned that in such a scenario, the ECB might be compelled to adjust its interest rate policy to manage the resulting fallout. These adjustments could have significant impacts on inflation and the broader economy.
As stablecoins continue to grow in popularity and size, regulators and financial institutions are closely monitoring their potential effects on economic stability worldwide.
https://bitcoinethereumnews.com/tech/ecb-warns-stablecoins-could-shift-interest-rates/