BlockBeats report, on May 23, the European Central Bank (ECB) rejected proposals to ease regulations on euro stablecoins, arguing that such measures are too risky and could undermine financial stability and monetary policy transmission. At an informal meeting of EU finance ministers in Nicosia, Cyprus, Bruegel suggested lowering liquidity requirements for stablecoin issuers and allowing them to access ECB funding when necessary to counter the dominance of dollar-denominated stablecoins and prevent "digital dollarization." However, officials, including ECB President Lagarde, strongly opposed the proposal, arguing that stablecoins could destabilize bank deposits, increase bank funding costs, weaken lending capacity, and interfere with interest rate policy.
Although some finance ministers have expressed mixed views on the proposal, several central bank officials have questioned the idea of making the ECB the "lender of last resort" for stablecoin issuers. The EU is currently imposing strict regulations on stablecoins under the MiCAR framework, while the U.S. GENIUS Act, passed in 2025, adopts a more relaxed approach. Currently, euro-denominated stablecoins account for only 0.3% of global stablecoin supply, and Europe is advancing its digital euro initiative to enhance payment autonomy.