Stablecoins Are Under The Spotlight Of EU Regulators
Categories: Crypto News US

Stablecoins Are Under The Spotlight Of EU Regulators
Stablecoins turned out to play a much stronger role than initially anticipated, as some existing stablecoins play a significant role in terms of liquidity of crypto-asset markets, such as Tether. The European Central Bank's (ECB) Stablecoin Role in Crypto and Beyond.
Functions, Risks, and Policy The report highlights the role of stablecoins in mainstream finance because of their rapid growth, increasing global use cases, and potential Financial risk transition channel.The ECB research paper also addresses the potential financial stability implications of stablecoins stemming from their current role in the crypto-asset ecosystem.
It turns out that over the years, stablecoins managed to become a safer alternative to crypto volatility, and the emergence of the DeFi sector further emphasized that importance. However, according to research, stablecoins constitute only a small part of the total crypto-asset market, but are the largest.