Summary
- Sleijpen, governor of the Dutch central bank, said that stablecoins could shock European financial markets as a whole if they were to be destabilized.
- He added that, particularly if shocks related to stablecoins grow, there is a possibility the ECB's monetary policy itself may need to be reassessed.
- The stablecoin market has grown by about 50% this year to reach $310 billion, and the U.S. Treasury projected it could expand to $2 trillion by 2028.
A warning has been raised that stablecoins could act as a macroeconomic source of volatility beyond financial regulatory issues.
On the 11th (local time), according to the Financial Times, Olaf Sleijpen, governor of the Dutch central bank, said, "If stablecoins are shaken they could shock European financial markets as a whole, and this could affect the ECB's monetary policy judgments."
He pointed to the rapid growth of dollar-pegged stablecoins and said, "If stablecoins become unstable, issuers may have to rapidly sell reserve assets." He warned that such rapid sell-offs could amplify market stress and affect financial stability, the real economy, and prices.
He particularly noted that if shocks related to stablecoins grow, the ECB "may have to reassess monetary policy itself." However, he explained that in such a case it is uncertain whether policy would need to move toward raising or lowering interest rates.
Meanwhile, the stablecoin market has continued rapid growth this year. According to CoinGecko data, the stablecoin market size increased by about 50% from the start of the year to reach about $310 billion. Earlier, the U.S. Treasury said in an April report that if the stablecoin market maintains its current pace, it could expand to $2 trillion by 2028.
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