BlockBeats news, on June 1, according to The Block, Isabel Schnabel, a member of the Executive Board of the European Central Bank, stated that the rapid development of stablecoins may pose risks to financial stability, monetary policy transmission, and the international monetary system, and that central banks should respond by strengthening regulation and advancing the development of central bank digital currencies (CBDCs).
She believes that the digital euro is crucial for maintaining the anchoring role of central bank money. The global stablecoin market cap has approached $300 billion, with Tether’s USDT and USD Coin’s USDC together accounting for approximately 90% of the market share. Dollar-denominated stablecoins are further reinforcing the dollar’s dominant position in the global financial system through network effects and may amplify the transmission of U.S. monetary policy worldwide, while euro-denominated stablecoins remain on the margins.
In addition, Schnabel stated that Europe should not resist financial innovation but should ensure that innovation develops within a framework that safeguards financial stability, monetary control, and public trust. She believes that a digital euro would not only guarantee continued public access to central bank money but also reduce Europe’s dependence on non-European payment service providers, enhance European financial autonomy, and provide Europe with a unified, legal-tender payment solution.