1. ⚖️ Central Banks Warn Stablecoins Threaten Sovereign Control
At the Sintra retreat, global central bankers—including the ECB and BoE heads—expressed 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 stability .
2. 🏦 J.P. Morgan Slashes Stablecoin Growth Forecast
J.P. Morgan has halved its stablecoin adoption outlook to $500 billion by 2028, down from a prior $4 trillion estimate. The bank cited limited real-world use, fragmented regulation, and strong dominance of platforms like Alipay and digital yuan initiatives .
3. 🌍 Europe Urged to Embrace Stablecoins, Not Fear Them
A former Société Générale ECB executive argued that Europe must overcome its regulatory reluctance and actively support stablecoins to modernize payments, strengthen capital markets, and prevent US dollar dominance—even under frameworks like MiCA .
4. ⚠️ Amundi Flags U.S. Stablecoin Law Could Undermine Global Payments
Amundi, Europe’s largest asset manager, warned that the U.S. GENIUS Act’s stablecoin rules may unintentionally destabilize global financial systems, triggering “dollarization” and altering monetary sovereignty. They highlighted risks from increased Treasury bond purchases and systemic shifts .
