Is Europe Losing the Stablecoin War? ECB Advisor Warns Yes
Main Idea
An ECB advisor warns that Europe is lagging in the stablecoin market, with euro-backed stablecoins capturing only 0.15% of the global market, while USD-pegged tokens dominate, threatening European monetary sovereignty.
Key Points
1. Euro-backed stablecoins account for only 0.15% of the $230B global stablecoin market, while USD-pegged tokens like USDT and USDC dominate with 99% market share.
2. The ECB advisor highlights that USD stablecoins could weaken the ECB’s control over monetary conditions and shift deposits from European banks.
3. Europe has launched initiatives like the MiCA-compliant EURAU stablecoin by Deutsche Bank, but its impact remains limited due to the market's current scale.
4. The ECB views the digital euro project as a key defense of European monetary sovereignty against the dominance of USD stablecoins.
5. The US and China are advancing their own stablecoin strategies, with the US favoring market-friendly approaches and China promoting yuan-backed digital currencies.
Description
A senior European Central Bank advisor has warned that Europe risks losing monetary sovereignty as euro-backed stablecoin(s) capture only 0.15% of the $230 billion global market. Jürgen Schaaf, writing in an official ECB blog post on July 28, described stablecoins as reshaping international finance while warning that European financial stability and policy autonomy could face serious erosion without strategic action. The stark disparity reveals the scale of Europe’s challenge, with USD-pegged to...
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