Dutch central bank governor Olaf Sleijpen warned that if stablecoins falter, issuers may be forced to liquidate their reserves, thereby magnifying stress across markets.
The European Central Bank (ECB) may soon be compelled to view stablecoins not just as a regulatory concern, but also as a potential source of macroeconomic shocks, according to Dutch central bank governor Olaf Sleijpen.
In a Financial Times interview, Sleijpen warned that the fast-growing dollar-pegged stablecoins could become systemically relevant to Europe’s financial ecosystem. He said that if the tokens were to destabilize, they could affect financial stability, the wider economy and even inflation.
“If stablecoins are not that stable, you could end up in a situation where the underlying assets need to be sold quickly,” he said, underscoring that rapid liquidation could amplify stress across markets.
