EU finance ministers and the ECB discussed ways to bolster euro-denominated stablecoins during a meeting in Nicosia last week. Officials expressed concerns that dollar-backed tokens could weaken European banks and monetary policy control. The ECB rejected proposals for relaxed liquidity rules or central bank backstops.
EU finance ministers gathered in Nicosia, Cyprus, for a two-day informal session of the Economic and Financial Affairs Council last Thursday. Europeans account for 38% of global stablecoin transactions, yet euro-denominated tokens represent just 0.3% of total supply. The discussion centered on preventing further digital dollarization through privately issued stablecoins.
