ECB officials are wary that stablecoins could "dollarize" the eurozone

A senior European Central Bank official has warned that the rise of dollar-linked stablecoins could plunge the eurozone into "dollarisation" and weaken the ECB's grip on monetary policy, according to the Financial Times. Ju ̈ rgen Schaff, adviser to the European Central Bank's market infrastructure and payments department, said in a post on the ECB's official blog that the rapid rollout of stablecoins could leave the eurozone facing a similar problem to emerging economies, known as "dollarisation", where the widespread use of the dollar hampers the ability of local policymakers to set interest rates or control the money supply.