Imagine the morning of 2026: you enter a café in Paris, and instead of euros on the price tags, there's a mysterious new currency.

Sounds like science fiction? But economists are already discussing that the familiar euro may lose its position.

Global financial upheavals, geopolitical shifts, and the ambitions of BRICS countries are pushing Europe toward change.

What is happening with the euro and which asset could become the new favorite of the continent? The economic situation in Europe in July 2025 looks tense.

The euro to dollar exchange rate, according to Bloomberg, reached 1.17 due to the easing of the US Federal Reserve's policy.

However, analysts at Goldman Sachs predict that by the end of the year, the rate may stabilize around 1.10 due to political disagreements in the European Union and a faster decline in European Central Bank rates compared to the Fed.

Christine Lagarde, head of the ECB, emphasized in an interview with the Financial Times that deepening fiscal integration in the EU could strengthen the currency, but disagreements among countries are hindering reforms.

This creates uncertainty that undermines trust in the euro. Global trends are intensifying the pressure.

BRICS countries are actively promoting settlements in national currencies to reduce dependence on Western money. According to RIA Novosti, their initiatives to create their own payment system are already reducing demand for euros in international trade.

Alexander Potavin, an analyst at Finam, noted in June 2025 that the euro could reach 110-120 rubles by 2026 if oil prices drop to 45 dollars per barrel, as suggested by the Bank of Russia.

This will weaken the position of the European currency not only globally but also in Russia, where demand for it is already declining due to the relocation of European enterprises to the USA. But what could replace it?

One of the scenarios discussed in financial circles is a digital euro. Jurgen Shaaf, a representative of the ECB, stated in July 2025 that digital currency and euro-based stablecoins could be the answer to dollar dominance.

The European Union is already testing distributed ledger technologies for such projects.

However, political disagreements in the EU and the high debt burden of countries like Italy may complicate implementation.

According to the OECD, stable economic growth in the eurozone creates a foundation for strengthening the euro in 2026, but without reforms, this will remain just a hope. Investors are already looking for alternatives.

Analysts advise diversifying portfolios by including gold and the yuan. Gold, as a safe asset, is gaining popularity amid instability.

The yuan is strengthening thanks to China's policy, which actively promotes its currency in international settlements.

In July 2025, the exchange rate of the yuan to the ruble, according to the Central Bank of Russia, fluctuates in the range of 10.9–11.25 rubles, reflecting its stability. The euro is holding for now, but its future is uncertain.

Political disagreements, declining demand, and the ambitions of other currencies are pushing Europe to seek a new financial path. Digital euro or yuan? Time will tell, but investors should keep an eye on news from the ECB and decisions from major banks. One thing is clear: the familiar financial world is changing, and Europe is on the brink of significant changes.