ECB Braces for Potential Stablecoin Impact

The European Central Bank may need to revise its monetary policy if stablecoins, perceived as a threat to financial stability, continue their rapid growth. ECB policymaker Olaf Sleijpen highlighted the potential systemic risks the digital tokens could pose to Europe's economy and inflation.

The European Central Bank may have to alter its monetary policy in response to potential economic disruptions caused by stablecoins, according to a key ECB official.

Olaf Sleijpen, governor of the Dutch central bank, emphasized the systemic relevance stablecoins could attain if they maintain their current growth trajectory in the U.S.

The emerging risks tied to these digital tokens might endanger financial stability and exacerbate inflationary pressures across Europe's economy, potentially compelling ECB intervention.

(With inputs from agencies.)