EU Considers Euro Stablecoins to Compete with Dollar Domination
The European Union aims to promote euro-denominated stablecoins for better competition against US dollar tokens, following a surge in dollar-paired stablecoins in 2025.
The European Union is taking steps to enhance the creation of euro-based stablecoins in a bid to rival the dominance of US dollar-based tokens. This push was articulated by Pierre Gramegna, managing director of the European Stability Mechanism, following the regulatory changes that led to a surge of dollar-pegged stablecoins in 2025.
“Europe should not be dependent on US dollar-denominated stablecoins, which are currently dominating markets.”
In a recent hearing focused on the economic landscape of the eurozone, he emphasized the potential financial innovation brought by stablecoins and tokenized assets, stating it was crucial for Europe to promote euro-denominated stablecoins issued by domestic entities.
Pierre Gramegna addresses the hearing about the need for euro-denominated stablecoins.
Source: European Commission
Paschal Donohoe, president of the Eurogroup, expressed agreement on this innovation while also noting the prospects of a digital euro, a central bank digital currency (CBDC), which he believes may positively impact the region’s commerce.
EU officials concurred on the necessity of euro stablecoins, especially given the boom in dollar-backed tokens after the US adopted the GENIUS regulatory framework, shifting from earlier views on the systemic risks posed by such assets.
Related: Bank of France wants EU crypto regulation under Paris-based ESMA
Digital euro CBDC Won’t Launch Before 2029
In remarks by Piero Cipollone of the European Central Bank, it was indicated that the digital euro may not launch until 2029 due to legislative delays.
Cipollone is among the strongest advocates for the digital euro and opposes privately issued digital currencies. Meanwhile, Christine Lagarde reiterated the importance of addressing risks associated with foreign stablecoins to protect the euro.
Christopher Waller from the US Federal Reserve highlighted the dominant role of the dollar in the crypto-asset trading landscape, indicating that cryptocurrency trading is often conducted in dollars, suggesting that this could reinforce the dollar’s status as the global reserve currency.
