ECB adviser doubts digital euro can match US dollar stablecoins

Key Points

1. ECB adviser Jürgen Schaaf argues that a digital euro (CBDC) alone cannot counter the dominance of US dollar stablecoins.

2. Euro-based stablecoins, if well-regulated, could meet legitimate market needs and address slow adoption rates in Europe.

3. The ECB is exploring distributed ledger technology (DLT) for wholesale and cross-border payments, as seen in projects like Pontes and Appia.

4. EU's MiCA regulation aims to promote euro stablecoins, but adoption remains sluggish compared to dollar-based alternatives.

5. The ECB plans to decide on the digital euro's implementation by 2025, alongside private-sector innovations like stablecoins and DLT.