ECB Board Member Warns Rising Stablecoin Use Could Cement Dollar Dominance, Diminish Euro Role

ECB board member Isabel Schnabel warned that increased stablecoin use could reinforce dollar dominance and diminish the euro's role. On June 1, 2026, US Federal Reserve governor Christopher Waller said at the 32nd Dubrovnik Economics Conference that dollar-backed stablecoins could bolster US monetary policy influence globally. The US Digital Asset Market Clarity Act passed the Senate Banking Committee on May 15, 2026, but faces uncertain prospects.

Dollar-backed stablecoin influence

• ▪The 32nd Dubrovnik Economics Conference is an annual Croatian National Bank event.
• ▪Christopher Waller stated that countries that increasingly rely on stablecoins backed by the US dollar may effectively import US monetary conditions.
• ▪Christopher Waller and Megan Greene participated in a panel discussion titled 'Stablecoins and monetary policy' at the 32nd Dubrovnik Economics Conference.
• ▪US Federal Reserve governor Christopher Waller said on June 1, 2026 that the growing use of dollar-backed stablecoins could bolster the global influence of US monetary policy.
• ▪Christopher Waller described stablecoins as a payment instrument that brings competition into the payments world.

Central bank digital currencies debate

• ▪Megan Greene predicted that the financial system will probably end up with all three of central bank digital currencies, stablecoins, and tokenized deposits.
• ▪Bank of England policymaker Megan Greene described central bank digital currencies as the tortoise in a race between the tortoise, the hare, and the rhino.
• ▪Christopher Waller said that enthusiasm for central bank digital currencies has faded among many central banks.

Tokenized deposits emergence

• ▪Megan Greene said that if she had to put money in one option among central bank digital currencies, stablecoins, and tokenized deposits, it would be tokenized deposits.
• ▪Bank of England policymaker Megan Greene predicted that tokenized deposits are probably going to take over from stablecoins.
• ▪Megan Greene said that five years from now, people might wonder why they were talking about stablecoins.

US stablecoin legislation challenges

• ▪Wyoming Senator Cynthia Lummis warned on May 31, 2026 that the US will lose its leadership position in crypto to other countries, including China, if lawmakers fail to pass the US Digital Asset Market Clarity Act in 2026.
• ▪The US Digital Asset Market Clarity Act passed out of the Senate Banking Committee on May 15, 2026 after months of debate between banks and the crypto industry over stablecoin yield provisions.
• ▪Debate over US policy on stablecoin yield has stymied progress on the US Digital Asset Market Clarity Act under consideration in the US Senate.
• ▪It is unclear if the US Digital Asset Market Clarity Act will be signed into law in 2026 due to opposition from the banking lobby and the looming US midterm elections.

Perspective of US Federal Reserve (Christopher Waller)

• ▪Christopher Waller stated that countries that increasingly rely on stablecoins backed by the US dollar may effectively import US monetary conditions.
• ▪US Federal Reserve governor Christopher Waller said on June 1, 2026 that the growing use of dollar-backed stablecoins could bolster the global influence of US monetary policy.

Perspective of Bank of England (Megan Greene)

• ▪Bank of England policymaker Megan Greene predicted that tokenized deposits are probably going to take over from stablecoins.
• ▪Megan Greene predicted that the financial system will probably end up with all three of central bank digital currencies, stablecoins, and tokenized deposits.

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