Dutch Central Bank President: Stablecoin Panic May Disrupt European Central Bank Policies

According to Jincai Finance, Olaf Slepen, the president of the Dutch Central Bank, stated that the European Central Bank (ECB) may soon have to regard stablecoins as a potential source of macroeconomic shocks, not just a regulatory issue. Slepen warned that the rapidly growing stablecoins pegged to the dollar could have systemic impacts on the European financial ecosystem. He indicated that if these Tokens become unstable, it could affect financial stability, the overall economy, and even Inflation. If the shocks are strong enough, the European Central Bank may be forced to “reconsider monetary policy.” However, he emphasized that it is still unclear whether this situation would require raising or lowering interest rates.