The Dutch Central Bank warns the ECB about the risks of stablecoin

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Dutch Central Bank President Klaas Knot warned that the ECB may need to adjust interest rates if a large-scale stablecoin withdrawal occurs. This warning reflects concerns about financial stability and the growing impact of stablecoins on monetary policy amid the strong growth of digital currencies.

Under the MiCA regulatory framework, European authorities are increasing oversight of stablecoins to reduce systemic risks. The ECB, under the leadership of Christine Lagarde, acknowledges that stablecoins can affect the monetary transmission mechanism and require tighter regulation. Although MiCA-compliant stablecoins are expected to help mitigate risks, the market is still closely monitoring.

Organizations like Quantoz, supported by Kraken and Tether, are leading the implementation of compliant stablecoins in Europe. Lagarde emphasized that stablecoins do not always maintain a fixed value, making them a risk to financial stability.

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