1. βοΈ Central Banks Warn Stablecoins Threaten Sovereign Control
At the Sintra retreat, global central bankersβincluding the ECB and BoE headsβexpressed concern that the rise of stablecoins could weaken the independence of traditional monetary systems. They called for stricter regulation to prevent loss of control over currency issuance and financial stabilityΒ .
2. π¦ J.P.β―Morgan Slashes Stablecoin Growth Forecast
J.P. Morgan has halved its stablecoin adoption outlook to $500β―billion by 2028, down from a prior $4β―trillion estimate. The bank cited limited real-world use, fragmented regulation, and strong dominance of platforms like Alipay and digital yuan initiativesΒ .
3. π Europe Urged to Embrace Stablecoins, Not Fear Them
A former SociΓ©tΓ©β―GΓ©nΓ©rale ECB executive argued that Europe must overcome its regulatory reluctance and actively support stablecoins to modernize payments, strengthen capital markets, and prevent US dollar dominanceβeven under frameworks like MiCAΒ .
4. β οΈ Amundi Flags U.S. Stablecoin Law Could Undermine Global Payments
Amundi, Europeβs largest asset manager, warned that the U.S. GENIUS Actβs stablecoin rules may unintentionally destabilize global financial systems, triggering βdollarizationβ and altering monetary sovereignty. They highlighted risks from increased Treasury bond purchases and systemic shiftsΒ .
