The proposal was made by the Brussels-based think tank Bruegel, during an informal two-day meeting with EU finance ministers and central bank heads in Cyprus. They discussed regulatory easing. According to DefiLlama, euro-denominated stablecoins with a capitalization of $677 million only occupy 0.2% of the stablecoin market. Bruegel representatives emphasized that softer rules and ECB support are necessary to reduce the dominance of dollar-based products. However, ECB President Christine Lagarde and several other central bank members opposed the idea. They argue that allowing stablecoin issuers to withdraw deposits en masse from banks would increase financing costs for lenders. The proposal would also limit lending capabilities and reduce the ECB's influence over interest rates. Nonetheless, according to Reuters, some of the EU countries' finance ministers supported the proposal.