Is Europe Losing the Stablecoin War? ECB Advisor Warns Yes

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.