Isabel Schnabel: Digital Euro is the best way to deal with stablecoin risks

According to Bloomberg, Isabel Schnabel, a member of the Executive Committee of the European Central Bank, stated that stablecoins may pose risks to financial stability and monetary policy, including increasing the risk of financial runs, weakening the transmission effect of interest rates, and consolidating the dominant position of the US dollar. She believes that ensuring public currency as the anchor of the system is the best response, and the European Central Bank's strategy relies on digital euros as retail central bank digital currencies, as well as tokenized central bank currencies as wholesale CBDCs. Schnabel emphasized that the advantages of stablecoins stem more from underlying technology rather than the characteristics of the tool itself.