European Central Bank officials wary of stablecoins potentially leading to 'dollarization' of the eurozone

According to the Financial Times, a senior official of the European Central Bank has warned that the rise of stablecoins pegged to the US dollar could lead to "dollarization" in the eurozone and weaken the ECB's control over monetary policy. J ü rgen Schaaf, Advisor to the Market Infrastructure and Payments Department of the European Central Bank, stated in an official blog post that the rapid deployment of stablecoins may pose a similar problem for the eurozone as emerging economies, namely "dollarization"; The widespread use of the US dollar in these emerging economies can hinder the ability of local decision-makers to set interest rates or control the money supply.