Europe

Former Binance CEO Changpeng Zhao (CZ) expressed concerns about the slow adoption of cryptocurrencies in Europe. Speaking on April 30, 2025, at the Token2049 conference in Dubai, Zhao noted that most European countries are "not moving anywhere" in terms of adopting digital currencies. According to him, the USA is actively exploring policies for creating crypto reserves, while countries like the UAE (specifically Dubai) and Bhutan are making progress by accumulating national reserves of Bitcoin ($BTC ) and Ether ($ETH ).

⚡ The energy crisis caused by the partial blackout in regions of Europe continues to impact the cryptocurrency mining sector. Countries like Germany, Austria, and Switzerland are facing difficulties with stable energy supply, forcing the temporary shutdown of several mining farms.

⛏️ This shutdown primarily affects Bitcoin, whose security depends on globally distributed computational power. Additionally, investors fear a possible migration of operations to locations with more expensive or less sustainable energy, which could influence operational costs and the asset's price.

Europe’s Last Stand: Will It Seize the Stablecoin Opportunity or Miss the Boat?

On February 25, #tether CEO Paolo Ardoino made a bold statement, calling #USDT the most powerful tool for spreading US dollar dominance across emerging markets. He revealed that Tether holds over $115 billion in US Treasuries , ranking as the **18th largest holder globally. But beyond the numbers, his words carried sharper edge:

"I'll leave it to you to define a competitor trying to use lawfare to kill an opponent instead of focusing on better products."

This wasn’t just a flex—it was a warning. The stablecoin market is heating up, and Europe is running out of time to carve its place in the game.

With Markets in Crypto-Assets Regulation (MiCA) making stablecoins more accessible across Europe, the demand is there. But will Europe capitalize on it, or will it let competitors—possibly even China’s RMB-backed stablecoin—dominate the space?

Why Stablecoins Are Critical for the Economy

Stablecoins aren’t just about fast transactions and price stability—they can fuel economic growth in ways that most people don’t realize.

Since stablecoins must be fully backed, issuers purchase government bonds, effectively tokenizing debt. This creates sustained demand for sovereign debt, which is a game-changer for Europe, especially given its rising defense budgets and financial restructuring needs.

A robust euro stablecoin ecosystem wouldn’t just benefit crypto traders—it could help strengthen the euro in global trade, reduce reliance on the US dollar, and support Europe’s long-term economic stability.

Why the Clock Is Ticking

Innovation has a window of opportunity, and Europe’s is rapidly closing.

In any new market, the best solutions gain early adoption. But as the industry matures, big players build high barriers to entry—just look at how launching a new car brand today requires billions in investment.

Crypto is no different. The “garage phase” of blockchain innovation is ending, and we’re entering an era where #liquidity and scale will determine the winners. Tether is already positioning itself to rival Apple in market size—soon, breaking into the stablecoin space will be nearly impossible.
On top of that, geopolitical competition is in full swing. If China launches an RMB-backed stablecoin first, it could **dominate international settlements**, making it even harder for a euro-backed alternative to gain traction.

Why Has EURT Failed?

Tether’s EuroTether (EURT) had potential, but it **never took off**. Why? **Liquidity issues** and **a lack of institutional backing**. European banks simply didn’t see the incentive to push it forward.

But that’s starting to change.

If major European banks get involved, the Eurozone’s crypto transactions could skyrocket—and with them, the euro’s influence in global settlements.

Right now, Tether’s stablecoin market share already exceeds the dollar’s fiat share by 1.5 times. That leaves a massive 30% gap in international payments that a euro-backed stablecoin could seize.

A well-executed euro stablecoin could inject €20 billion into the European economy, just by driving demand for European government bonds. And with Tether processing $100 billion in daily transactions, even capturing just 20% of that would make a huge impact.

What Role Does Regulation Play?

While MiCA doesn’t regulate stablecoins directly, it sets the foundation for a euro-pegged digital currency. The benefits for **European businesses are obvious:

- **Hedge against exchange rate risks**
- **Enable seamless cross-border transactions**
- **Reduce borrowing costs** by driving demand for government bonds

But for a euro stablecoin to succeed, major EU banks and crypto firms must step up. A strong consortium could push forward a project with deep liquidity, ensuring that Europe doesn’t fall behind.

Most importantly, this can’t be an afterthought. A new, independent stablecoin needs to be built from the ground up—with new leadership and full European control.

This is it—the final chance for Europe to launch a stablecoin that competes on the global stage. The question is: Will they seize the moment or let the opportunity slip away?
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