Stablecoins are not immune to uncertainties. Those are the sentiments shared by the European Central Bank (ECB). According to the regulator, stablecoin stability could be hampered by the uncertainties stemming from the lack of regulations.
The fact that regulatory pressures do affect fiat currencies is one of the tailwinds that could take a toll on the stability of stablecoins. For instance, these coins pegged on fiat currencies, such as Tether (USDT), are always subject to volatility in line with regulatory policies instituted by the FED to protect the dollar.
The ECB has since …