Stablecoins Pose Fresh Risk To Eurozone Lending, ECB Says
Europe’s top central bank is watching stablecoins with growing caution. What began as a niche crypto tool is now large enough to draw attention in Frankfurt. Related Reading: US Senate Tucks CBDC Ban Into Housing Bill, Sets 2030 Deadline Based on reports, the European Central Bank has warned that wider use of privately issued digital […]
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Coinbase’s CPO has defended stablecoins and pushed back on the banking sector’s fears of a potential collapse of bank deposits and community banks, arguing that the concerns are unfounded and could pose a risk to the emerging sector. Related Reading: Ondo Finance Brings Tokenized Stocks, ETFs To BNB Chain With New Expansion Coinbase Refutes Banks’ […]
Platforms are offering investors several opportunities to earn from stablecoins, some of which extend far beyond cryptocurrency lending. Many are quick to flock to stablecoins for their ability to de-risk cryptocurrency positions. A stablecoin can be pegged to any perceivably stable asset, for instance, a digital asset like Bitcoin (BTC) or a fiat currency like the US dollar. In theory, if a digital asset was pegged to the US dollar, $100 worth of the digital currency should mean $100 in the backed asset is held in a secure reserve like a bank account. Stablecoins are broad in utility;....
Stablecoins could "threaten financial security" if widely adopted, the ECB head said in a magazine interview.
While Visa and other major private payments networks see the potential of stablecoins, China's central bank believes they pose serious risks to global financial systems. The Chinese central bank is “quite worried” about the global financial risks associated with digital currencies, particularly stablecoins, according to a senior official.Fan Yifei, a deputy governor of the People’s Bank of China (PBoC), expressed concerns over the reportedly serious threat stablecoins like Tether (USDT) pose to global financial and settlement systems, CNBC reported Thursday.The official emphasized that the....