The European Central Bank opposes easing the rules on euro stablecoins, stating that it could weaken bank lending and interest rate control

According to a report by Reuters, the European Central Bank opposed the proposal to promote more euro stablecoins at the EU finance ministers' meeting, arguing that relaxing liquidity requirements for stablecoin issuers, or even allowing them access to financing from the European Central Bank, could undermine the stability of bank deposits, suppress bank lending, and increase the difficulty of interest rate regulation.

The proposal was put forward by Bruegel in the meeting documents, aiming to expand the market currently dominated by dollar stablecoins. European Central Bank President Christine Lagarde has previously expressed a cautious attitude towards euro stablecoins and has shown more support for tokenized commercial bank deposit schemes.

The report also stated that the EU is reviewing the MiCA, which will take effect in 2024, while the U.S. will pass the more lenient GENIUS Act in 2025.