European Central Bank Executive Board member Isabel Schnabel has advocated for the launch of a digital euro to address the risks posed by stablecoins. Schnabel highlighted that while stablecoins offer significant benefits, they also pose threats to financial stability and monetary policy, potentially leading to bank runs and weakening interest rate transmission. She emphasized that a digital euro, as a retail central bank digital currency (CBDC), would ensure public money remains the system's anchor. Schnabel's comments follow Federal Reserve Governor Waller's criticism of CBDCs, describing them as unnecessary.