ECB Flags Dollar Stablecoin Risks Amid MiCA Review

• Euro stablecoins lag, with USDT holding 98% market share
• ECB warns dollar tokens may revive old money-market risks

On June 2, 2026 (UTC), Reuters reported that European Central Bank (ECB) Executive Board member Isabel Schnabel warned stablecoins are importing traditional money-market vulnerabilities into tokenized finance—including bank disintermediation, runs, and fire sales. Schnabel underscored that most stablecoins remain pegged to the US dollar, which threatens to reinforce US monetary dominance and reduce the euro’s international role as crypto adoption expands.

According to Schnabel’s official ECB speech on June 1, 2026, once private forms of money such as dollar stablecoins become established, they are difficult to replace or reshape. She argued that central banks must respond by issuing secure, modern forms of central bank money: a digital euro for retail users and tokenized settlement instruments for wholesale purposes. The ECB does not support promoting euro-denominated stablecoins as a counter to dollar tokens, instead focusing on modernizing public money to maintain monetary stability and policy control.

Meanwhile, the European Commission’s ongoing review of the Markets in Crypto-Assets (MiCA) regulation has opened a public consultation until August 31, 2026. Cointelegraph reported on June 2, 2026, that industry calls seek updates to stablecoin rules for greater competitiveness, including flexible reserve requirements and incentives for euro tokens. These proposals contrast with the ECB’s emphasis on financial stability risk and the importance of retaining control over monetary policy.

As of June 2, 2026, 05:09 UTC, Tether USDt (USDT) holds a reported $0.998 value and a -0.017% 24-hour volume change, dominating the stablecoin market. PayPal USD (PYUSD) trades at $1.00, with a -0.009% change. USDC (USDC) is at $1.00 with a -0.013% change. EURC (EURC) stands at $1.164, down -0.11%. Dai (DAI) trades at $0.999, with a -0.033% change. Global Dollar (USDG) hits $1.00, with a -0.018% change. World Liberty Financial USD (USD1) is at $0.998, with a -0.029% change. Ethena USDe (USDe) trades at $0.999, down -0.007%. USDD (USDD) is at $0.998, with a -0.181% change.