ECB Rejects Proposals to Boost Euro Stablecoins, Says It’s Too Risky
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On May 22, 2026 the ECB rejected Bruegel's proposals to ease liquidity rules, give euro stablecoin issuers access to ECB funding, and act as lender of last resort, saying these moves are too risky for monetary stability. The bank warned of deposit flight, higher funding costs and potential reserve runs, raising digital dollarisation concerns and likely hurting EU competitiveness and adoption of euro stablecoins in the crypto, DeFi and payments ecosystem.
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- The ECB rejected proposals to ease liquidity rules and boost euro stablecoins, saying they are too risky.
- The ECB says stablecoins would destabilize bank deposits and weaken its ability to control interest rates.
- This raises digital dollarisation concerns and EU’s competitiveness in the global stablecoin market.
On May 22, 2026, the European Central Bank (ECB) rejected proposals from the Bruegel think tank to ease liquidity rules, grant stablecoin issuers access to ECB funding, and designate the ECB as lender of last resort for them.
ECB President Christine Lagarde and other officials cited risks including bank deposit flight, higher funding costs, reduced lending capacity, and potential runs on reserves that could undermine monetary policy.
ECB Rejects Proposals to Ease Liquidity Rules
According to sources, the ECB has rejected proposals set out in a paper b…
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