ECB’s Schnabel Reveals Why Stablecoins Need a Digital Euro Response

ECB board member Isabel Schnabel warned that stablecoins could bring money-market risks into tokenized finance and reinforce US dollar dominance.

A senior European Central Bank official has warned that stablecoins carry the same fragilities that once destabilized money market funds, cautioning that their rapid rise could threaten financial stability and quietly entrench the US dollar at the euro’s expense. Related Reading: Which Cryptos Are Best Positioned To Follow The Same Trajectory As Hyperliquid (HYPE)? The […]

The post Euro: Supported by ECB hikes and AI investment – BNP Paribas appeared on BitcoinEthereumNews.com. BNP Paribas projects Eurozone Gross Domestic Product (GDP) growth slowing from 1.5% in 2025 to 1.0% in 2026 and 1.3% in 2027, with inflation rebounding to 3.0% and 3.3%. Activity is seen withstanding the energy shock thanks to investment in defence, AI and electrification. The European Central Bank (ECB) is expected to deliver two 25 bp hikes in 2026, while EUR/USD is forecast at 1.21 by Q4 2026 and 1.25 by Q4 2027. Eurozone growth slows but stays resilient “Eurozone growth would slow due to spillovers from the Middle East conflict.” “GDP growth, which reached 1.5% in 2025, would slow down to 1.0% in 2026 and 1.3% in 2027, while inflation would rebound to 3.0% in 2026 and 3.3% in 2027 (compared to 2.1% in 2025).” “Activity would nevertheless withstand the energy shock, supported by investment in defence, AI, and electrification, which should continue to boost intra-EU trade.” “As

The post GENIUS Act Deadlines Loom, ECB Pushes Digital Euro as Coinbase Opens India INR Rails appeared on BitcoinEthereumNews.com. Crypto News The opening week of June places U.S. stablecoin policy under hard deadlines, with comment periods for the GENIUS Act frameworks scheduled to close at the Treasury, FDIC, and FinCEN on June 2. The closures convert federal statute into operational requirements that issuers must build against, settling questions over reserves, yield, and licensing. Banking lobbies have pressed to slow the rollout, particularly around yield-bearing stablecoins, an objection that helped stall the Clarity Act for months. The Senate floor reopens on June 3 to consolidate market structure provisions with CFTC oversight and GENIUS amendments into one vehicle, with sponsors targeting an August signing. ECB board member Isabel Schnabel argued in Seoul on Monday that central banks must respond to swelling stablecoin volumes with stricter regulation and retail central bank d

The post You Can Now Trade 8,000 US Stocks on Binance Using Your Stablecoins appeared on BitcoinEthereumNews.com. Binance opened access to more than 8,000 US stocks and exchange-traded funds for its non-US customers on Monday. The world’s largest crypto exchange framed the launch as a step toward becoming a multi-asset financial super app. The move places Binance alongside rivals racing to merge crypto rails with traditional equity markets. Customers can buy fractional shares starting at $5, with zero commission, using stablecoins or the exchange’s own token. Crypto Exchanges Chase Wall Street The launch reflects a wider convergence between crypto platforms and traditional finance. Exchanges that once focused on tokens now want a slice of the equities business. Co-CEO Richard Teng told Fortune that US stocks make up well over half of global equities. Yet many overseas buyers face high costs and friction when they try to access them. Binance is not alone in this shift. Earlier, OKX move

The post ECB: 12-month forward inflation projections remain steady at 4% appeared on BitcoinEthereumNews.com. The latest survey by the European Central Bank (ECB) of consumer inflation expectations shows that one-year forward inflation projections remain steady at 4%. Three-year forward inflation projections have cooled down to 2.9% from March’s reading of 3%. Five-year forward inflation projections have remained steady at 2.4%. ECB FAQs The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy for the region. The ECB primary mandate is to maintain price stability, which means keeping inflation at around 2%. Its primary tool for achieving this is by raising or lowering interest rates. Relatively high interest rates will usually result in a stronger Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the

The post ECB’s Schnabel says digital euro needed as stablecoin market nears $300B appeared on BitcoinEthereumNews.com. Stablecoins nearing a $300 billion market value have prompted fresh warnings from the European Central Bank, whose officials say a digital euro is needed to protect financial stability and maintain the role of central bank money in the payments system. Summary ECB board member Isabel Schnabel warned that stablecoins could create financial stability risks as the sector approaches a $300 billion market value. Schnabel said dollar-backed stablecoins could strengthen the U.S. dollar’s global position, while euro-denominated stablecoins remain a small part of the market. The ECB continues to back a digital euro project, with a pilot expected in 2027 and potential issuance readiness targeted for 2029. According to Isabel Schnabel, a member of the European Central Bank’s Executive Board, the rapid growth of stablecoins has introduced risks that could affect financial stabilit

Stablecoins nearing a $300 billion market value have prompted fresh warnings from the European Central Bank, whose officials say a digital euro is needed to protect financial stability and maintain the role of central bank money in the payments system.…