The European Central Bank warns of cross-border regulatory arbitrage risks for stablecoins and calls for a unified global regulatory framework.
ChainCatcher news, the European Central Bank released a preview of its Financial Stability Review today (the official report will be published on Wednesday), showing that by 2025, the total market capitalization of stablecoins has surpassed $280 billion, accounting for about 8% of the entire crypto market. Among them, USDT and USDC together account for nearly 90%, and their reserve assets have reached the scale of the world's top 20 money market funds.
The European Central Bank report points out that if stablecoins are widely adopted, households may convert part of their bank deposits into stablecoins, weakening banks' retail funding sources and increasing funding volatility. Although MiCAR has already prohibited European issuers from paying interest to curb such transfers, banks are still calling for the United States to implement similar restrictions. In addition, the rapid growth of stablecoins and their connection with the banking system may also trigger a concentrated withdrawal of funds during crises. The report emphasizes the risks of cross-border "multi-issuer mechanisms," warning that EU issuers may find it difficult to meet global redemption requests, and calls for the implementation of additional safeguards before granting access, as well as promoting global regulatory alignment.
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