European central banks push to expand stablecoin yield ban to crypto lending and staking
Central bankers argue that indirect yield structures blur the line between electronic payment tokens and commercial bank deposits, distorting financial system competition.
Source: CoinDesk
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DW NOTE
The ECB wants to ban staking, lending, and any other mechanism that lets stablecoins earn a return — even indirectly. The justification is that yield "blurs the distinction" between electronic money and bank deposits. Translation: if depositors can earn yield on tokens that settle instantly and don't require a banking license, the deposit franchise looks exactly like the political arrangement it is.