ECB Warns: A Stablecoin Run Could Shake Europe’s Monetary Policy

[chainsniff]

The ECB is sounding the alarm: a mass redemption of stablecoins could force it to rethink monetary policy. Olaf Sleijpen warns that dollar-based stablecoins are expanding so quickly they may become systemically important.
A sudden run would force issuers to dump assets like US Treasuries, triggering volatility that spills into Europe’s bond markets. Rising yields could tighten financial conditions and push the ECB to adjust rates—not because of Europe’s economy, but to counter instability originating from crypto.
Officials stress: stablecoins aren’t just a tech issue anymore—they’re a monetary sovereignty issue.

[alex10]

A large-scale stablecoin run could truly destabilize traditional systems.