“Europe should not be dependent on US dollar-denominated stablecoins,” Says EU Official, ECB Extends Support

The 9th October 2025 Fintech Forum in Paris saw a top European Union official sounding the alarm, warning that the EU must accelerate its efforts to develop Euro-backed stablecoins – or risk US dominance in the global digital payment system.

Insisting on the importance of Euro-backed stablecoins, Pierre Gramegna, Managing Director of the European Stability Mechanism (ESM), said, “Europe should not be dependent on US dollar-denominated stablecoins, which are currently dominating markets. Stablecoins are an inevitable part of this equation.!

“In a rapidly evolving financial landscape, Europe should do its best to facilitate the generation of euro-denominated stablecoins by domestic issuers,” he added.

So far, Euro stablecoins account for only $620 million of $300 billion market.

A historic morning in Paris – and a turning point for Europe’s stablecoin future.

At the opening of the Fintech Forum in Paris, François Villeroy de Galhau, Governor of the Banque de France, delivered an unprecedented speech – the most forward-leaning ever by a European central… pic.twitter.com/Fx1c5PxNKr

— Raphaël Bloch (@Raph_Bloch) October 9, 2025

Paschal Donohoe, the president of the Eurogroup pointed out that “the digital euro could still be a net positive for commerce in the region.”

In July 2025, the European Central Bank (ECB) also called for stronger international coordination for stablecoin regulation.

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US Is Outpacing Europe In Digital Currency Race, Especially Since GENIUS Act

Meanwhile, François Villeroy de Galhau, Governor of the Banque de France, said, “If banks are looking at the dollar stablecoin market – why not? That’s where the market is today. But they should equally focus on their natural market of tomorrow: euro stablecoins.” The Governor even went further, describing the coexistence of tokenized deposits and euro stablecoins issued by regulated banks as essential to Europe’s future monetary architecture. De Galhau said, “We could have both – but we must not end up with neither.”

The GENIUS Act lays out a simple rule: every stablecoin must be backed one-to-one with cash or liquid assets, and issuers must make those reserves public. US recently passed this stablecoin bill as a part of a broader package. Alongside the GENIUS Act, the House passed the CLARITY Act and the Anti-CBDC Surveillance State Act. The CLARITY Act would give the CFTC more control over crypto markets, while the Anti-CBDC bill aims to block any digital dollar efforts by the Federal Reserve.

Launch Of Euro-Backed Stablecoin In H2 2026?

Nine of Europe’s biggest banks—including ING, UniCredit, Danske Bank, SEB, KBC, DekaBank, Banca Sella, and Raiffeisen Bank International—have decided to collaborate on a euro-backed stablecoin. Under the European Union’s (EU) Markets in Crypto-Assets Regulation (MiCA) framework, the collaborating banks will roll out the stablecoin in the second half of 2026. Will this be a game-changer for European crypto payments? Will the euro-backed stablecoin reduce Europe’s reliance on US dollar-denominated stablecoins?

On 25 September 2025, ING released the joint statement confirming that “the initiative will provide a real European alternative to the US-dominated stablecoin market, contributing to Europe’s strategic autonomy in payments.”

According to the banking giants, the stablecoin will provide near-instant, low-cost payments and settlements. Furthermore, it will enable 24/7 access to efficient cross-border payments, programmable payments, and improvements in supply chain management and digital asset settlements, which can vary from securities to cryptocurrencies.

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