EU Finance Ministers Address Stablecoin Supply Gap

Europeans are responsible for 38% of global stablecoin transactions, yet euro-denominated tokens make up only 0.3% of the total stablecoin supply. According to NS3.AI, this discrepancy was a key topic of discussion among EU finance ministers during a meeting in Nicosia, Cyprus. The European Central Bank (ECB) expressed opposition to relaxing regulations and providing ECB funding access to stablecoin issuers. ECB President Christine Lagarde cautioned that an increase in euro stablecoin issuance could potentially deplete bank deposits and undermine the effectiveness of monetary policy transmission.