“Europe Must Compete”: EU Official Demands Euro Stablecoins to Break US Dollar’s Monopoly

A senior European Union official has called for the creation of euro-backed stablecoins to challenge the dominance of U. S. dollar-pegged tokens in global crypto ￰4￱ Gramegna, managing director of the European Stability Mechanism (ESM), said Europe must accelerate its efforts to issue domestic stablecoins and strengthen its digital financial sovereignty. “Europe should not be dependent on U.

S. dollar-denominated stablecoins, which are currently dominating markets,” Gramegna said during a Thursday hearing on the eurozone’s economic outlook, where digital assets were among the topics ￰5￱ added that “Stablecoins are an inevitable part of this ￰6￱ a rapidly evolving financial landscape, Europe should do its best to facilitate the generation of euro-denominated stablecoins by domestic issuers.” Digital Euro Gains Momentum as EU Debates Strategy to Counter ￰7￱ Lead Gramegna’s comments come amid growing concerns that the ￰8￱ gaining a decisive lead in the digital currency space following the introduction of the GENIUS regulatory framework earlier this year , which spurred growth in dollar-backed stablecoins such as USDC and ￰9￱ officials worry that continued reliance on U.

S.-issued tokens could undermine the EU’s control over its financial system and payment ￰10￱ Donohoe, president of the Eurogroup, supported Gramegna’s stance on financial innovation but noted that the European Central Bank’s (ECB) digital euro project could also play a vital role in modernizing payments. “The digital euro could still be a net positive for commerce in the region,” he ￰11￱ is already building behind the digital euro ￰12￱ to ECB Executive Board member Piero Cipollone, the central bank could roll out a digital euro by 2029 as discussions among member states progress. A digital euro could launch in 2029, says ECB board member Piero Cipollone, citing growing momentum and progress in member-state talks. #digitaleuro #ECB ￰0￱ — ￰13￱ (@cryptonews) September 24, 2025 He described recent talks as a “major breakthrough” after euro area finance chiefs reached consensus on customer holding limits to protect bank ￰14￱ said that by early May next year, the European Parliament should have a position on the legislative framework underpinning the project, following an October progress report and several rounds of ￰15￱ states are also expected to reach a general agreement by the end of this ￰16￱ digital euro is designed to reduce Europe’s reliance on private payment companies such as Visa and PayPal, while also curbing the influence of dollar-denominated stablecoins in the region.

However, several technical and policy questions remain unresolved, including privacy safeguards, bank coexistence, and whether the currency should operate on a public blockchain such as Ethereum or ￰17￱ officials are fast-tracking the digital euro, weighing Ethereum or Solana, as pressure mounts to keep pace with US progress in digital currencies. #DigitalEuro #ethereum #Solana ￰1￱ — ￰18￱ (@cryptonews) August 22, 2025 Supporters argue that euro stablecoins and a digital euro could reinforce Europe’s competitiveness in global finance, while skeptics warn that delays in regulation could leave the region further behind the ￰19￱ shaping the future of digital ￰20￱ Steps Up Stablecoin Push to Counter ￰21￱ Dominance European policymakers and financial institutions are intensifying efforts to develop euro-backed stablecoins, seeking to counter the overwhelming dominance of U.

S. dollar-pegged ￰22￱ July, European Central Bank (ECB) adviser Jürgen Schaaf called for stronger global coordination on stablecoin regulation , warning that gaps between ￰23￱ EU frameworks could reinforce dollar ￰24￱ advisor warns Europe risks losing monetary sovereignty as euro-denominated stablecoins capture just 0.15% of $230 billion global stablecoin market. #Europe #Stablecoin ￰2￱ — ￰25￱ (@cryptonews) July 29, 2025 Writing on the ECB’s website, Schaaf urged support for “properly regulated euro-denominated stablecoins,” arguing they could strengthen Europe’s monetary sovereignty if designed with robust ￰26￱ pointed to the ￰27￱ Act, signed into law in July, as “broadly aligned” with the EU’s Markets in Crypto-Assets (MiCA) framework but less stringent in certain ￰28￱ said consistent global standards are needed to prevent market fragmentation and regulatory ￰29￱ ECB adviser’s remarks follow earlier concerns from Bank of Italy Governor Fabio Panetta, who noted the limited adoption of euro stablecoins despite MiCA’s ￰30￱ said the digital euro could help bridge that gap, while Schaaf emphasized that private innovation and distributed ledger technology (DLT) must complement public ￰31￱ ECB has already approved two DLT pilot projects , Pontes and Appia, aimed at improving wholesale and cross-border ￰32￱ the same time, nine of Europe’s largest banks, including ING, UniCredit, CaixaBank, and Danske Bank, have announced plans to jointly launch a euro-backed stablecoin in ￰33￱ European banks will launch a MiCA-regulated, euro-backed stablecoin that will contribute to Europe’s strategic autonomy in payments. #EURStablecoin #MiCARegulation ￰3￱ — ￰34￱ (@cryptonews) September 25, 2025 The consortium will seek licensing under MiCA and promises faster, cheaper, and 24/7 cross-border ￰35￱ initiative highlights Europe’s growing determination to reduce reliance on U.

S. stablecoins, which account for roughly 99% of global ￰36￱ data shows euro-pegged tokens remain below €350 million in circulation, a gap European regulators and banks now appear intent on closing.