News Summary

• The European Central Bank warned EU finance ministers that expanding euro stablecoin issuance could weaken bank lending and complicate monetary policy.
• The pushback came in response to a policy paper prepared by Brussels-based think tank Bruegel.
• Europeans conduct 38% of global stablecoin transactions, yet euro-denominated tokens account for just 0.3% of total supply.
• The debate comes as the EU reviews its Markets in Crypto-Assets (MiCA) regulation, which requires stablecoin issuers to hold large reserves in liquid assets.