The ECB economist warned about the danger of the popularity of stablecoins for the European Union

The growing popularity of stablecoins pegged to the dollar threatens to undermine the control of the European Central Bank (ECB) over monetary policy. This was announced on July 28 by Jurgen Schaaf, adviser to the ECB's Market infrastructure and payments department, as quoted by the Financial Times.

The newspaper recalled that on July 19, US President Donald Trump signed the Genius Act bill, which lays down the regulatory framework for stablecoins pegged to the value of the US dollar. According to Schaaf, the rapid introduction of stablecoins hinders the control of the money supply and the setting of interest rates. This will lead to the fact that the eurozone will find itself in the same conditions as developing countries that widely use the US dollar.

"If stablecoins denominated in US dollars become widespread in the eurozone — whether for payments, savings or settlements — the ECB's control over monetary conditions may weaken," the expert noted.

Schaaf added that Donald Trump's desire to promote stablecoins will strengthen the dollar's dominance in the world and possibly reduce the cost of borrowing in the United States.

"For Europe, this will mean higher financing costs compared to the United States, reduced monetary policy autonomy and geopolitical dependence," he said.

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Earlier, on July 14, the owner and CEO of GIS Mining, Vasily Girya, told Izvestia that bitcoin continues to grow steadily due to steady demand from institutional investors. According to his expert, geopolitical instability and discussions around the US debt policy are forcing part of the capital to flow from government bonds to digital assets, including bitcoin.