European Central Bank: $280 billion stablecoin market capitalization may pose risks; cross-border regulatory arbitrage is a hidden danger.
TL;DR
ECB warns that the $280B stablecoin market, holding US Treasuries, risks financial instability like de-anchoring and bank runs. Cross-border regulatory gaps may cause reserve shortages, urging global coordination and G20 roadmap implementation.
Tags
According to the latest Financial Stability Report from the European Odaily Bank (ECB), the global market capitalization of stablecoins has risen to $280 billion, accounting for approximately 8% of the total market capitalization of crypto assets. The rapid growth of stablecoins, their large holdings of short-term US Treasury bonds, and their strong correlation with traditional finance may trigger financial stability risks such as de-anchoring, bank runs, and cross-market shocks. The ECB specifically warned that cross-border regulatory arbitrage could lead to reserve shortages for EU issuers and recommended further strengthening global regulatory coordination and implementing the G20 stablecoin regulatory roadmap to reduce spillover risks.