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22 de sept. de 2025 In terms of likelihood, the ECB thinks the widespread use of a stablecoin as a store of value is significantly less probable than the payment scenario. Its biggest concern Un nuevo informe del BCE afirma que las stablecoins no son prácticas como método de pago y que su forma actual no es adecuada para su uso en la economía real. These officials allege that stablecoins’ structure, combined with their exponential growth, pose a unique risk to global markets. Before the May 2025 Terra crash A recent ECB report says stablecoins are not practical as a mode of payment and their current form isn't fit for use in the real economy. The report by ECB says that the key purpose of stablecoins in the broader crypto ecosystem and their role for unbacked cryptocurrencies could have a domino effect on Stablecoins were time and again given an upper hand due to their stability. However, defying its ethos, Terra’s stablecoin lost its $1 peg. Picking on the same point, the Against this background, this paper assesses stablecoins’ implications for the euro area based on three scenarios for the uptake of stablecoins: (i) as a crypto-assets accessory function; (ii) as a

Stablecoins Are Not Ideal Money: Lessons from Terra & the ECB Perspective

The dream of stablecoins as a widespread mode of payment (MoE) is facing increased scrutiny, particularly after the devastating collapse of Terra (LUNA) and its associated stablecoin, UST. What does the European Central Bank (ECB) think? A recent ECB report, as quoted on 22 de sept. de 2025, underlines the growing skepticism. This article explores why stablecoins, in their current form, are being deemed unsuitable for widespread use in the real economy, referencing ECB assessments and highlighting the vulnerabilities exposed by Terra's downfall.

ECB's Concerns Regarding Stablecoin Adoption

Un nuevo informe del BCE afirma que las stablecoins no son prácticas como método de pago y que su forma actual no es adecuada para su uso en la economía real. The ECB's reservations stem from a variety of factors. These officials allege that stablecoins’ structure, combined with their exponential growth, pose a unique risk to global markets. The central bank identifies structural flaws that could destabilize the financial system if stablecoin adoption becomes widespread. In terms of likelihood, the ECB thinks the widespread use of a stablecoin as a store of value is significantly less probable than the payment scenario. Its biggest concern revolves around the potential for these assets to disrupt monetary policy and undermine the stability of the euro.

The Terra Crash: A Stark Reminder of Stablecoin Risks

Before the May 2025 Terra crash, stablecoins were time and again given an upper hand due to their stability. However, defying its ethos, Terra’s stablecoin lost its $1 peg. The collapse of Terra served as a brutal wake-up call, exposing the inherent vulnerabilities of algorithmic stablecoins and the potential for rapid de-pegging. The domino effect of the Terra collapse reverberated throughout the cryptocurrency market, highlighting the interconnectedness and fragility of the crypto ecosystem. The report by ECB says that the key purpose of stablecoins in the broader crypto ecosystem and their role for unbacked cryptocurrencies could have a domino effect on wider markets.

Stablecoins and the Euro Area: ECB Scenarios

Against this background, this paper assesses stablecoins’ implications for the euro area based on three scenarios for the uptake of stablecoins: (i) as a crypto-assets accessory function; (ii) as a...The ECB is carefully considering different scenarios for stablecoin adoption and their potential impact on the euro area. While acknowledging the potential benefits of stablecoins in niche applications, the central bank remains cautious about their widespread integration into the financial system, particularly as a primary means of payment.

Conclusion: A Need for Stricter Regulation and Design

The ECB's concerns and the lessons learned from the Terra collapse underscore the need for robust regulatory frameworks and innovative stablecoin designs that prioritize stability and transparency. A recent ECB report says stablecoins are not practical as a mode of payment and their current form isn't fit for use in the real economy. Picking on the same point, the future of stablecoins as a viable alternative to traditional currencies hinges on addressing these critical issues and fostering greater confidence in their underlying stability. Without significant improvements and stricter oversight, stablecoins may remain a niche product rather than a mainstream form of money.

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