[European Central Bank Opposes Relaxing Euro Stablecoin Rules]
According to Reuters, the European Central Bank opposed relaxing liquidity requirements for euro stablecoin issuers during the EU finance ministers' meeting, arguing that such a move could undermine the stability of bank deposits, suppress bank lending, and increase the difficulty of interest rate regulation. The proposal, presented by Bruegel in meeting documents, aims to expand the market dominated by dollar stablecoins. European Central Bank President Christine Lagarde is more supportive of tokenized commercial bank deposit solutions. The report states that the EU is reviewing the MiCA regulation set to take effect in 2024, while the U.S. plans to pass the GENIUS Act in 2025.
