Stablecoin panic could upend ECB policy, Dutch central bank governor warns

Dutch central bank governor Olaf Sleijpen has issued a warning regarding the potential risks associated with stablecoins. He cautioned that if stablecoins were to fail, the issuers might be compelled to liquidate their reserves, which could lead to increased stress across financial markets. This statement highlights the vulnerabilities within the cryptocurrency sector and raises concerns about the broader implications for economic stability.