EU Commission Reiterates Concerns Over Euro Stablecoin Proposals, Flags Three Key Risks

According to Foresight News, the EU Commission reiterated its concerns about proposals to expand the euro stablecoin market, warning of deposit diversion risks, monetary transmission complexity, and redemption-related bank run risks. During an informal meeting, the Bruegel Institute proposed relaxing liquidity requirements for stablecoin issuers and designating the European Central Bank as a lender of last resort for regulated banks. Other central bank officials called for restricting European redemptions of U.S. and EU-issued stablecoins.
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