ECB Official Warns Stablecoins Endanger Euro Influence

Izabel Schabel, a member of the European Central Bank's Executive Board, warned that the rapid spread of dollar-linked stablecoins could boost the dominance of the dollar over the global financial system and weaken central banks' ability to effectively manage their monetary policies. She pointed out that the increasing use of these currencies might strengthen the dollar's global influence, especially in economies with weak credibility and economic fluctuations, potentially diminishing the role of the euro and impacting the international financial system in the long term.

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