ECB digs in against easing rules for euro stablecoins, warns of risks to banks and rate control

The European Central Bank is pushing back against proposals that would relax regulation for euro-denominated stablecoins, Reuters reported. The ECB argues that wider adoption could pull deposits away from banks, curb lending and complicate the transmission of monetary policy, making it harder to steer interest rates. The stance raises fresh questions about how far the EU's regulatory approach supports financial innovation.