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The European financial environment is going through a period of significant changes caused by the advent of digital assets. Olaf Sleupen, a representative of the Central Bank of the Netherlands, highlighted an important detail of modern monetary policy. He noted that there is a certain relationship between the development of stablecoins and the decisions of the European Central Bank on interest rates.

Interestingly, the danger comes from tools that were originally created for stability. These digital assets, pegged to conventional currencies, have gained huge popularity – their total value has exceeded $ 300 billion. They have transformed from a niche tool into a serious financial asset that affects the availability of money and investment decisions of major players.

European officials are particularly concerned about the speed at which money is moving through stablecoins. If ordinary banks work slowly, then these tokens allow you to transfer billions of dollars in a matter of seconds. Users perceive them as digital cash and rarely think about how reliable it all is. After all, each token has a complex security system that can collapse at any moment.

The Dutch Central Bank sees a risk that the actions of the European Central Bank may not coincide with what is happening in the digital asset market. If suddenly everyone wants to get rid of stablecoins at once, their creators will have to actively sell reserve assets. This could shake up the government bond market and require the central bank to make unexpected changes in the interest rate.

The lack of protective mechanisms creates an additional threat. Unlike bank deposits, investments in stablecoins do not have insurance, and this makes investors extremely defenseless at the slightest hint of problems. A sharp detaching from the underlying asset can instantly collapse the price of the token and provoke a chain reaction on all financial platforms.

The Central Bank of the Netherlands believes that stablecoins have passed the formation stage and reached a new level. Now these digital assets have a real impact on financial stability and monetary policy. Therefore, the development of clear rules of the game for stablecoins by the European Central Bank and other regulators is not just a precaution, but an urgent need.