What’s the risk of US dollar stablecoins in Europe?

[madmax]

The ECB warns that widespread adoption of USD-backed stablecoins could weaken monetary control in the eurozone, especially during financial crises. If Europeans increasingly hold dollar-denominated digital assets for perceived safety or higher yields, the euro’s influence could diminish, limiting policymakers’ ability to steer the economy.

[Nahid Hossen]

Over-dependence on USD-backed tokens means less monetary control for Europe. ️