Dutch central bank governor Olaf Sleijpen warns that stablecoins could disrupt financial stability and inflation control in Europe, potentially forcing the ECB to reconsider its monetary policy. The rapid growth of stablecoins in the US, backed by U.S. Treasuries, poses a risk to market disruptions and calls for using financial stability tools as a defense. ECB advisor Jürgen Schaaf also warns about the threat of dollar-pegged stablecoins to Europe’s monetary sovereignty and financial stability, advocating for a digital euro as a sovereign alternative.

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