Euro-based stablecoins could threaten USD counterparts by 2028, according to predictions from Fiorenzo Manganiello, founder & managing partner of LIAN Group.

Manganiello points to the dollar’s current weakness, which has fallen to a three-year low due to a combination of delayed rate cuts, a growing budget deficit, and the threat of a US recession.

This decline creates an opportunity for the euro to establish itself as a global reserve currency, with European Central Bank President Christine Lagarde pushing for a stronger euro that could compete with the dollar internationally.

The stablecoin market currently shows a significant imbalance, with 56 USD-pegged coins dominating compared to only 12 prominent euro-based alternatives. Manganiello believes this disparity will diminish in the coming years.

While Manganiello acknowledges that complete de-dollarization could take decades, he expects stablecoin issuers to capitalize on the euro’s momentum. He anticipates more euro-pegged coins will rise in the rankings, challenging the current USD stablecoin dominance.