According to TechFlow news from Deep Tide, on July 4, Financial Times reported that Lorenzo Bini Smaghi, Chairman of Société Générale and former Executive Board member of the European Central Bank, stated that Europe needs to overcome its fear of stablecoins and actively embrace this technology. Currently, nearly 99% of stablecoins are issued in the United States and denominated in dollars, while the euro is almost disregarded in this emerging digital financial ecosystem.
Bini Smaghi pointed out that stablecoins are a technological breakthrough that allows for almost instantaneous cross-border peer-to-peer transactions at low cost. The EU has established a comprehensive regulatory framework through the Markets in Crypto-Assets (MiCA) regulation, requiring stablecoin issuers to hold high-quality liquidity reserves, but Europe still lags far behind the United States.
He warned that if Europe does not actively promote the issuance and use of euro stablecoins, deposits in the eurozone will migrate to foreign platforms, European payment systems will become disintermediated, ultimately jeopardizing European monetary sovereignty. The European Central Bank should take a leading role in coordinating stablecoin regulation and innovation.
