The European Union is urged to develop euro-denominated stablecoins to effectively compete with US dollar stablecoins, following a surge of dollar-backed tokens detected after recent U.S. legislative developments in 2025.
Pierre Gramegna, Managing Director of the European Stability Mechanism (ESM), emphasized the following:
“Europe should not be dependent on US dollar-denominated stablecoins, which are currently dominating markets.”
Gramegna further elaborated during a Thursday hearing regarding the eurozone’s economic health, highlighting that stablecoins and tokenized assets are essential for the region’s financial innovation.
He remarked:
“Europe should embrace the financial innovation potential of stablecoins, facilitating the creation of euro-denominated stablecoins by local issuers.”
Pierre Gramegna addresses the hearing about the need for euro-denominated stablecoins.
Source: European Commission
Paschal Donohoe, Eurogroup President, acknowledged the necessity for such financial innovations, mentioning that a digital euro might yield more benefits for the regional commerce.
The consensus among EU officials regarding euro stablecoins arises from the boom in dollar-denominated tokens post the passage of the GENIUS regulatory framework in the U.S. This shift radically alters prior cautionary stances on the systemic risks presented by stablecoins.
Digital Euro CBDC Postponed
According to ECB board member Piero Cipollone, the launch of the digital euro will likely be delayed until 2029 due to bureaucratic hurdles.
Cipollone is notably an advocate for the digital euro and a critic of privately-issued digital currencies. Recently, Christine Lagarde cautioned about the operational risks stemming from foreign stablecoins, proposing the need for effective regulations to maintain the EU’s financial ecosystem.
Christopher Waller has touted dollar-denominated stablecoins as a mechanism to uphold the dollar’s status as a global reserve currency, stating,
“Crypto-assets are de facto traded in US dollars. Thus, expansion in the DeFi space will likely reinforce the dollar’s dominant role,” in a 2024 address.
