EU explores Euro stablecoins and DLT to counter US digital asset dominance

Key Points

1. The EU is considering regulated euro-pegged stablecoins and DLT to modernize payments and reduce reliance on US dollar-backed stablecoins.

2. ECB adviser Jürgen Schaaf advocates for stronger regulatory alignment and new DLT-powered projects like Pontes and Appia to enhance Europe's financial infrastructure.

3. US President Donald Trump's executive order supporting stablecoin development has increased EU urgency to act.

4. Euro-based stablecoins have seen slow adoption despite frameworks like MiCA, while DLT pilots aim to improve domestic and cross-border payments.

5. The ECB is expected to decide on the digital euro by the end of 2025, with a focus on maintaining financial sovereignty amid US-led digital finance dominance.