ECB may adjust policy if stablecoin run creates economic shockwaves - report

Investing.com -- The European Central Bank might need to adjust its monetary policy if a run on stablecoins sends shockwaves through the economy, according to ECB policymaker Olaf Sleijpen.

In an interview with the Financial Times published Monday, the Dutch central bank governor warned about the growing significance of digital tokens in the financial system.

"If stablecoins in the U.S. increase at the same pace as they have been increasing . . . they will become systemically relevant at a certain point," Sleijpen told the newspaper.

The central banker expressed concern that these digital tokens could create risks for financial stability, the broader economy, and inflation in Europe, potentially forcing the ECB to take action.

Stablecoins are cryptocurrencies designed to maintain a stable value by being pegged to assets like the U.S. dollar or other traditional currencies.

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