The European Central Bank has pushed back against a proposal that would loosen liquidity requirements for euro stablecoin issuers and potentially give them access to central bank funding, drawing a clear line between private token issuance and the ECB’s role as lender of last resort. The proposal, presented through a Bruegel policy brief to EU finance ministers and central bank governors at an informal meeting in Nicosia, Cyprus, argued that Europe needs more permissive rules to build a meaningful euro stablecoin market. Its authors said the current framework risks leaving the sector dominated by dollar-denominated ... (full story)