BlockBeats News, June 1st. According to The Block, Isabel Schnabel, a member of the Executive Board of the European Central Bank, stated that the rapid development of stablecoins may pose risks to financial stability, monetary policy transmission, and the international monetary system. She believes that central banks around the world should address this issue by strengthening regulation and advancing central bank digital currency (CBDC) development.

She emphasized the importance of a digital euro in maintaining the anchoring role of central bank money. Schnabel mentioned that the global stablecoin market is approaching a total value of nearly $300 billion, with Tether USDT and USD Coin USDC accounting for around 90% of the market share. She warned that USD-denominated stablecoins are further strengthening the dollar's dominant position in the global financial system through network effects, potentially amplifying the transmission of U.S. monetary policy globally, while the euro stablecoin is currently still on the sidelines.

Furthermore, Schnabel also expressed that Europe should not resist financial innovation but rather ensure that innovation develops within a framework that preserves financial stability, monetary control, and public trust. She believes that a digital euro can not only ensure that the public continues to have access to central bank money but also reduce Europe's reliance on non-European payment service providers, enhance Europe's financial autonomy, and provide Europe with a unified payment solution with legal tender status.