ECB Board Member Isabel Schnabel: "Stablecoins Increase Bank Run Risk and Weaken Interest Rate Policy Effectiveness" | ECB Board Member Warns: "Stablecoins Pose Risk to Financial Stability"
European Central Bank (ECB) Executive Board member Isabel Schnabel warned that stablecoins could pose potential risks to financial stability and monetary policy
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- European Central Bank (ECB) Executive Board member Isabel Schnabel warned that stablecoins could pose potential risks to financial stability and monetary policy
European Central Bank (ECB) Executive Board member Isabel Schnabel warned that stablecoins could pose potential risks to financial stability and monetary policy.
According to Bloomberg, Schnabel made these remarks during a speech at the Bank of Korea (BOK) International Conference held in Seoul on the 1st.
She pointed out, "While stablecoins may offer significant benefits, they can increase the risk of bank runs and weaken the effectiveness of interest rate decisions." She added concerns that stablecoins "strengthen the international dominance of the U.S. dollar."
In response, Schnabel emphasized, "The best response for the ECB is to ensure that public money serves as the anchor of the system," advocating for the need for systematic regulation and response.