ECB puts its foot down on expanded euro stablecoins

The ECB has sent a clear signal to EU finance ministers: an expansion of euro-denominated stablecoins could undermine both banks' lending capacity and the transmission of monetary policy itself. That's according to The Paypers.

The warning came in response to a paper from the Brussels-based think tank Bruegel, which proposed easing liquidity requirements for crypto asset issuers to keep activity within the EU.

The debate illustrates the tension between keeping the EU competitive in crypto and protecting financial stability — a line that is likely to keep dominating Brussels into the autumn.