Overview

• The European Systemic Risk Board recommended prohibiting stablecoins issued across multiple jurisdictions by the same entity.
• The European Central Bank urged outright bans or far stricter oversight of multi-issuance structures to close regulatory gaps.
• Officials warned that such designs can create reserve mismatches and concentrated redemptions that threaten financial stability.
• The ESRB recommendation carries no legal force, leaving next steps to EU member-state authorities and potential legislative action.
• ECB officials said EU states could decide on a digital euro by year-end, with reports suggesting a possible launch by 2029 as a longer-term response.