The adoption of stablecoins is growing rapidly across Europe, now closely following the United States. However, it is not experiencing the type of adoption it was seeking. Nowadays, people across the region are opting for dollar-backed stablecoins instead of those backed by the euro.
As a result, the current dominant stablecoin represents a risk to Europe's monetary sovereignty. In an interview, Alexander Hoeptner, CEO of AllUnity —the first issuer of euro-backed stablecoin in Germany— explained that the increase in demand for euro-backed stablecoins could help prevent a decline in the euro's role in digital finance.