The European Central Bank has strongly opposed the European Commission’s plan to allow foreign stablecoins, warning that such a move could trigger financial instability and put strain on EU banks during periods of market stress

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Brussels is poised to announce new rules for the fast-growing stablecoin market, shrugging off warnings from the European Central Bank that the standards could destabilise the region’s banks during periods of market volatility.

The shift comes despite repeated warnings from the European Central Bank, which has cautioned that unrestricted access to foreign stablecoins could undermine financial stability.