The European Central Bank said stablecoin risks in the euro area are limited, with crypto trading dominating use and retail adoption under 1%, while monitoring continues.
Financial stability experts at the European Central Bank (ECB) said stablecoin-related risks in the euro area are limited due to low adoption and preventative regulation.
The ECB on Monday published its financial stability review pre-release, devoting it to the growing market of stablecoins, which are digital assets pegged to the value of fiat currencies or commodities.
Authored by ECB financial stability experts Senne Aerts, Claudia Lambert and Elisa Reinhold, the report questioned stablecoin use cases beyond crypto trading and highlighted their low financial stability risks in the euro area.
