Member of the European Central Bank's Executive Committee: Stablecoins issued by companies such as PayPal pose a threat to financial stability and may even hinder healthy market competition.

Odaily Planet Daily News European Central Bank (ECB) Executive Committee member Fabio Panetta said at a meeting of the European Parliament's Economic and Monetary Affairs Committee on Monday that stablecoins issued by private companies such as PayPal not only pose a threat to financial stability, but also if they become dominant and Monopoly status may also hinder healthy competition in the market. “Private payment service providers, including PayPal, have no incentive to limit the usage or scope of stablecoins. Quite the contrary, their goal is to expand their customer base and gain market share,” Panetta said. Panetta believes that companies such as PayPal have the ability to reinvest reserve assets into financial products that provide interest and thereby earn significant income. However, these companies may not be interested in making their payment solutions compatible with existing payment solutions. Panetta noted: “While the entry of large tech companies or other large payment providers into the market may initially boost innovation, if they gain a monopoly position, it could seriously impede (fair) competition, as we have seen in other digital domains. "(Decrypt)