The European Central Bank has opposed proposals to relax rules for euro stablecoins, warning EU finance ministers that broader issuance could reduce lending by traditional banks and make interest-rate control harder, according to Reuters. The warning was reported Friday after a Bruegel report urged policymakers to support growth in Europe’s stablecoin market by easing liquidity requirements and considering possible ECB funding support. The debate underscores central bank concerns that wider circulation of fiat-backed digital tokens could affect bank funding and the transmission of monetary policy.