ECB senior economist Juergen Schaaf warned about the risks of widespread use of stablecoins pegged to the US dollar. Tokens such as Tether (USDT) and Circle (USDC) dominate the market (about 99%) and are actively used for cross-border transfers. However, their popularity threatens Europe's financial stability and monetary sovereignty. Loss of trust in the stablecoin security system can cause an «infection effect» affecting traditional finance. Schaaf emphasizes that the appearance of interest rates on them makes stablecoins competitors to bank deposits, provoking capital outflow from European banks. This limits their ability to lend to the economy. In addition, their proliferation threatens to displace the euro from international settlements, increasing the eurozone's dependence on the United States. The economist believes that US support for stablecoins strengthens the global dominance of the dollar. To minimize risks, Schaaf suggests accelerating the development of the digital euro, creating regulated eurostablecoins, introducing DLT technologies for settlements, and strengthening international regulation. Meanwhile, the United States is already promoting the GENIUS Act, which could increase the stablecoin market from $230 billion to $2 trillion by 2028.
