ECB Warns Stablecoin Redemptions Could Trigger Bank Withdrawals

Stablecoins offer 24/7 settlement, but the ECB warns that large-scale redemptions could potentially trigger withdrawals from the traditional banking system.
Stablecoins accounted for 94% of crypto purchased with Argentine pesos, while roughly $38B in Turkish lira was exchanged for stablecoins over a year, according to Sphere Labs and SVB.
MELD says most businesses using its service convert stablecoins back into fiat immediately after settlement, highlighting their growing role as payment and settlement infrastructure rather than purely investment assets.