The ECB says the risks of stablecoins in the euro area remain minimal, mainly due to low adoption and the safeguards introduced by MiCA, even as global expansion accelerates. Euro-denominated stablecoins account for just 0.02% of the global market, and most activity is tied to trading rather than everyday payments.
Stablecoins Under MiCA: Limited Impact but Rising Global Risks
MiCA, the EU’s landmark crypto framework, introduces strict requirements for issuers and service providers, including a ban on interest payments, 1:1 reserves in cash or liquid assets, and a prohibition on algorithmic stablecoins. Only EU-supervised institutions can issue e-money tokens, and the ECB can restrict non-euro stablecoins if they threaten monetary sovereignty.
These measures aim to prevent stablecoins from competing with bank deposits, reduce redemption-run risk and limit contagion channels into the traditional financial system. Reserve diversification rules further strengthen liquidity buffers during periods of market stress.
Still, European regulators warn that global growth of stablecoins introduces new vulnerabilities. Around 80% of trades on centralized exchanges involve stablecoins, while only 0.5% of transfers are organic retail payments, highlighting their heavy concentration in crypto markets and limited real-economy use — for now.
Estimates of global size vary, with figures ranging from $230B to over $300B following strong growth in 2025. Transaction volume reached $27T across 1.25B operations in 2024, illustrating the scale at which mass redemptions could force issuers to liquidate their U.S. Treasury-heavy reserves under stressed conditions.
The ECB flags key risks: bank deposit outflows, potential run dynamics on poorly backed issuers and mounting concerns over “digital dollarization”, with 84% of stablecoins pegged to USD. Cross-border co-issuance with non-EU entities also raises regulatory-arbitrage vulnerabilities, prompting calls for harmonized global rules.
For now, low euro-area usage and MiCA’s protections keep risks contained, but the ECB stresses the need for constant monitoring and international coordination as stablecoins continue expanding worldwide.
