Stablecoins Can Threaten Entire Financial System, ESM Chief Says

Stablecoins can become a danger to financial stability if not guaranteed and managed properly, according to a top European Union policymaker.

“We think that if stablecoins become mainstream, and if they’re not guaranteed as central bank money, then obviously there’s a risk to the whole financial system, not just in Europe, but the whole world,” European Stability Mechanism Managing Director Pierre Gramegna said in an interview in Washington on Wednesday.