The European Union’s top financial risk authority has warned that stablecoins could pose a serious threat to financial stability unless urgent safeguards are introduced. In a statement released on October 2, the European Systemic Risk Board (ESRB), chaired by European Central Bank President Christine Lagarde, pointed out vulnerabilities in so-called “third country multi-issuer” stablecoin models and called for immediate policy action. Stablecoins, designed to maintain a steady value by pegging to fiat cu ...