The adoption rate of stablecoins in Europe is rising, but it still struggles to shake the dominance of the US dollar

Although the trading volume of EU stablecoins increased from 16% in 2024 to 34% in 2025, 99.8% of transactions are still dominated by US dollar stablecoins. Alexander Hoeptner, CEO of German euro stablecoin issuer AllUnity, warns that this could undermine the euro's position in digital finance.

To address this challenge, the EU launched the MiCA regulatory framework in December 2024, aimed at promoting the development of euro stablecoins by establishing unified capital, redemption, and transparency rules. However, even so, the market share of euro stablecoins remains less than 0.2%. Hoeptner from AllUnity stated that Europe needs more incentives to drive the adoption of #欧元稳定币 .

On a deeper level, this issue actually reveals the structural advantages of the US dollar in global finance. Due to the dollar's liquidity, widespread use, and long-standing dominance, it naturally becomes the preferred choice for stablecoins. While Europe has a strong currency system and a unified regulatory framework, it lacks a single monetary policy, resulting in insufficient competitiveness for euro stablecoins.

To address this dilemma, on one hand, the European Central Bank is actively promoting the digital euro project, aiming to launch it in 2026; on the other hand, it encourages the private sector to issue euro stablecoins that support smart contracts and DeFi functions. Hoeptner points out that these two forms of digital currency can complement each other and jointly enhance Europe's digital financial sovereignty.

However, traditional financial institutions hold a conservative attitude towards stablecoin innovation, which may slow down the pace of change. Although institutions like France's Foreign Trade Bank have begun to experiment with euro stablecoins, overall development progress is slow. Hoeptner warns that if traditional finance does not actively adapt to this change, Europe may become entirely reliant on external solutions in the field of digital finance.

Looking ahead, for Europe to promote the comprehensive adoption of euro stablecoins, it must first ensure a smooth connection between the MiCA regulatory framework and traditional financial regulation, while promoting the coordinated development of the digital euro and private sector stablecoins, aiming to establish a solid public-private partnership.

Whether these measures can effectively reduce Europe’s dependence on the US dollar will depend on the strength of policy enforcement and the acceptance level in the market. In the current geopolitical environment, this challenge concerns not only economic interests but also the core issue of monetary sovereignty in the digital age.