ECB Warns US Crypto Push Threatens EU Economy

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The European Central Bank (ECB) is raising concerns about a potential threat to financial stability in the Eurozone: the rise of US-backed stablecoins, particularly under Donald Trump’s crypto-friendly administration.

The ECB warns that the US is loosening crypto regulations to attract capital, which could lead to an influx of dollar-denominated stablecoins in Europe.

Officials fear this could divert investment from the EU and undermine the euro’s dominance in regional markets.

ECB President Christine Lagarde has called for revisions to the EU’s Markets in Crypto-Assets (MiCA) regulation, stating it’s insufficient to address risks from a growing US stablecoin market.

The primary concern is that widely used dollar-tied stablecoins in Europe could challenge the euro’s role and disrupt EU monetary policy.