Dutch Central Bank President Klaas Knot warned that the ECB may need to adjust interest rates in the event of a large-scale stablecoin withdrawal, highlighting concerns for financial stability and the growing impact of stablecoins on monetary policy. Under the MiCA framework, European authorities are enhancing oversight of stablecoins to mitigate systemic risks. ECB President Christine Lagarde acknowledged that stablecoins could influence monetary transmission mechanisms, necessitating stricter regulations.