ECB Opposes Easing Euro Stablecoin Rules, Citing Risks to Bank Lending and Interest Rate Control

According to Reuters, the European Central Bank (ECB) opposed a proposal to promote more euro-denominated stablecoins at a meeting of EU finance ministers, arguing that relaxing liquidity requirements for stablecoin issuers—or even granting them access to ECB funding—could undermine the stability of bank deposits, dampen bank lending, and complicate interest rate control. The proposal was put forward by Bruegel in its meeting document, aiming to expand the current market, which is 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 deposit solutions. The report also notes that the EU is reviewing the Markets in Crypto-Assets (MiCA) regulation, which entered into force in 2024, while the U.S. passed the more permissive GENIUS Act in 2025.