EuroStablecoin

As global financial landscapes continue to evolve, the European Union is being urged to strengthen the development of euro-backed stablecoins to reduce reliance on U.S. dollar–denominated tokens, according to Cointelegraph.

During a recent hearing on the eurozone’s economic outlook and digital asset ecosystem, Pierre Gramegna, Managing Director of the European Stability Mechanism, emphasized that Europe must embrace financial innovation to stay competitive. He highlighted that most leading stablecoins are currently pegged to the U.S. dollar, giving America an upper hand in the digital economy. Gramegna called on European policymakers and domestic issuers to accelerate the creation of euro-denominated stablecoins as a strategic move to reclaim monetary influence.

Paschal Donohoe, President of the Eurogroup, echoed this sentiment, noting that financial modernization through tokenization and the upcoming digital euro (CBDC) could transform commerce within the EU. Officials believe that euro-backed stablecoins will play a vital role in strengthening the region’s financial sovereignty and ensuring that digital value flows remain anchored within the European economy.

However, the digital euro CBDC itself is not expected before 2029, according to ECB Board Member Piero Cipollone. He attributed the delay to ongoing regulatory deliberations but reaffirmed his stance against privately issued digital currencies. ECB President Christine Lagarde also warned of the systemic risks posed by foreign stablecoins, stressing that effective regulations are crucial to safeguard European liquidity.

Globally, stablecoins are emerging as a geostrategic tool, as nations digitize their fiat currencies to boost demand and maintain global influence. U.S. Federal Reserve Governor Christopher Waller previously highlighted that most crypto assets are traded in U.S. dollars, meaning the continued dominance of dollar-backed stablecoins reinforces the greenback’s supremacy in both traditional and decentralized finance (DeFi).

The EU’s proactive stance signals a turning point — a move toward digital financial sovereignty in an era where monetary power is increasingly defined by blockchain-backed assets rather than traditional systems.

#EuroStablecoin #CBDC #digitaleuro #defi

Nine major European banking institutions have joined forces to launch a fully compliant, euro-backed stablecoin, aiming to establish a native, regulated digital payment standard for the continent. This ambitious project, expected to emerge in the second half of 2026, represents a significant push by traditional finance to solidify Europe's position in the rapidly evolving digital asset space under the comprehensive framework of the Markets in Crypto-Assets (MiCA) regulation.

The Powerhouse Consortium
The consortium comprises a powerful group of banks from eight European Union member states. Their collaboration underscores an industry-wide recognition that a unified approach is essential for setting a new standard in digital payments.

The Founding Member Banks:

As articulated by Floris Lugt, Digital Assets head at ING and joint spokesperson for the project, "We believe this development requires an industry-wide approach, and it's imperative that banks adopt the same standards." The group has expressed openness to welcoming additional financial partners to the initiative.

MiCA Compliance: The Mandate for Trust
The stablecoin's launch is strategically timed to align with the EU's MiCA regulation, which has tightened its grip on the crypto industry since its 2023 enactment. Full compliance with this regulatory blueprint is the core differentiator, providing a legally clear and transparent foundation for the new digital currency.

Key Regulatory Milestones:
Registration and Licensing: The consortium has created a Netherlands-based corporation to oversee the endeavor. This entity will apply for an e-money license from the Dutch Central Bank (De Nederlandsche Bank - DNB), which will supervise the stablecoin's operations in line with MiCA's requirements for e-money tokens (EMTs).
Reserve Requirements: Under MiCA, the euro-backed stablecoin must be fully reserved and adhere to strict rules on the quality, location, and management of its backing assets, ensuring a stable 1:1 peg to the euro.
Market Impact: MiCA’s stringent rules have already impacted the stablecoin market, contributing to the delisting of non-compliant tokens like Tether's USDT on several European exchanges, while Circle's USDC gained an early regulatory advantage by securing the first USD-pegged digital currency license under MiCA.

Strategic Vision: Europe's Digital Autonomy
The primary motivation behind this joint venture is to counteract the pervasive influence of US Dollar-denominated crypto assets—which currently dominate the global stablecoin market—and reinforce Europe’s strategic autonomy in payments.

Core Benefits and Use Cases:
Near-Instant Settlement: Leveraging blockchain technology, the stablecoin will enable 24/7, near-instant, and low-cost cross-border payments, significantly reducing the friction and cost burdens of traditional payment rails.
Programmable Finance: The digital currency is designed to facilitate advanced use cases, including programmable payments for automating supply chain management and streamlining the settlement of diverse digital assets, from securities to cryptocurrencies.
Retail and Institutional Adoption: Individual participating banks will be able to offer value-added services such as stablecoin wallets and custody to their customers, accelerating its integration into both retail and institutional payment systems.
The consortium's move is a powerful statement that a private sector, regulated digital euro can serve as a vital component of Europe’s digital future, working in parallel with the European Central Bank’s preparations for an official Digital Euro, which is not anticipated to launch until at least 2029. The appointment of a CEO for the new entity is a clear next step in professionalizing the venture and driving it toward its target launch in H2 2026.
#EuroStablecoin #OnChainFinance #EuropeanAutonomy #CryptoRegulation #MiCACompliance