The EU official, who spoke anonymously to Politico, dismissed the ECB’s warning that U.S.‑dollar stablecoins could spark redemption‑run contagion in EU markets as the Bank had fundamentally misread MiCA, which had been explicitly designed to resolve such concerns and it made “no economic sense” for U.S. users to impose redemption requests on European issuers, and that the idea of a traditional “run” on an asset backed one-to-one was “nonsense.”

Event date

Apr 14, 2025 - 12:00am

Quotes that support claims

The gulf between the institutions’ views turned into a clash during the meeting as EU officials and most governments pushed back against the central bank, according to two diplomats and one EU official, who were granted anonymity to speak freely about private talks.

The EU official suggested that the ECB’s paper was based on a fundamental misreading of the MiCA regulation, which, the official said, had been designed explicitly to resolve the issues mentioned by the ECB. The official added that it made “no economic sense” for U.S. users to impose redemption requests on European issuers, and that the idea of a traditional “run” on an asset backed one-to-one was “nonsense.”