ECB reiterates warning that stablecoins could trigger financial crisis

The European Central Bank (ECB) has once again warned that stablecoins could pose a risk to global financial stability, according to CoinDesk. In a report on Nov. 24, the ECB stated that if stablecoins absorb retail deposits from eurozone banks, it could diminish the banks' stable funding sources. The central bank further pointed out that a large-scale bank run could create selling pressure on government bonds, potentially triggering a financial crisis.