The ECB advocates for a digital euro CBDC as an alternative to private stablecoins to mitigate financial stability risks

Quotes that support claims

The ECB’s criticisms were also motivated by a desire to create a central bank-issued digital currency, which would compete with and could potentially undercut stablecoins issued by private companies, the executive added.

The European Central Bank (ECB) strenuously disagreed with the proposal, instead advocating for a digital euro CBDC. It warns of risks to European bank stability, but ignoring stablecoin growth is risky too.