Overview
- Bank of England policymaker Megan Greene said on May 31 that tokenized bank deposits are likely to overtake stablecoins within about five years because banks will move to protect their deposit bases.
- Federal Reserve Governor Christopher Waller defended dollar-backed stablecoins at the same Dubrovnik panel, saying they lower payment costs and could extend the reach of U.S. monetary conditions into other economies.
- European Central Bank board member Isabel Schnabel warned on June 1 that a near-$300 billion stablecoin market concentrated in USDT and USDC risks reinforcing dollar dominance and could weaken the euro’s role and monetary transmission.
- Policy choices are diverging: the BoE is prioritizing a multi-money system and bank deposit token pilots in 2026–2027, the Fed is broadly supportive of regulated stablecoins, and the ECB is advancing a digital euro with pilots planned and keeping strict MiCA reserve and liquidity rules.
- The debate matters for people and markets because large stablecoin adoption can pull retail savings from banks, tighten lending, shift who benefits from payment fees, and leave regulators racing to shape rules and public alternatives such as the digital euro.