The European Central Bank (ECB) has indicated that the rise of cryptocurrencies and new forms of digital payment represent a direct challenge for the international role of the euro.
In his report annual on the global use of the European currency, The institution warns about the risks that cryptoactive and other digital innovations suppose for financial stability traditional and the positioning of the euro compared to other monetary signs.
The document, which analyzes the evolution of the euro as a reservation asset and a means of payment outside the countries that use it as an official money, highlights that its participation in the main international use indicators remained stable around 19% for 2024.
However, among the threats identified by the ECB are cryptocurrencies, and, in particular, the efforts of certain countries to promote them as an alternative to the traditional financial system.
One of the main concerns highlighted is The advance of the initiatives promoted by the United States to reinforce the global use of cryptoactiveswhich could progressively move to traditional fiat coins.
The ECB warns that these developments, driven by the growing adoption of Bitcoin (BTC) and the stablecoins anchored to the dollar, could generate alterations in international capital flows and affect financial stability worldwide.
«New challenges have emerged that the euro must face to strengthen its international role. The new US administration has taken initiatives to support the global use of cryptocurrencies. These include the creation of a ‘Bitcoin Strategic Reserve’, using 17,000 million dollars in BTC seized by the US Treasury in judicial processes … In addition, some initiatives seek to promote innovation and facilitate the emission and use of stablcoins linked to the dollar, which, at the end of 2024, represented approximately 99% of the capitalization of the Stablecoins market.
Excerpt from the report issued by the European Central Bank.
The Bank recognizes increasing monetary competition among world world economies, along with a technological struggle for the control of the future financial system.
It emphasizes that the stablecoins backed by the American currency already have a significant presence, with in public debt that are around 150,000 million dollars, a figure comparable to the size of the reserves of countries such as Germany or Mexico.
So, The ECB emphasizes the need to accelerate its plans for the digital euroa CBDC as a means to strengthen European economic sovereignty and preserve the strength of its currency. In addition, the institution urges legislators to eliminate internal barriers that hinder the integration of the continent financial markets.
The agency emphasizes that, although the euro remains the second most used currency internationally, its position faces pressures that are increasing.
Among the aforementioned factors are the record accumulation of gold by the central banks, the boom of alternative payment systems – such as Brics Clear or the Chinese CIPS system – and the use of local currencies in international agreements.
The launch of the digital euro is scheduled for October 2025, and the project has raised an intense debate about its implications. While the authorities present it as a step towards a more modern and efficient system, various voices warn about the risks of giving the State an unprecedented powerespecially in terms of control over citizens, as cryptootics reported.
Critics such as Marc Vidal and Captain Bitcoin warn that the total digital euro could erode individual freedoms. The latter even compares it to the system that currently governs in China.
Although many see in the digital currencies of Central Banks (CBDC) a state surveillance tool, voices such as that of the president of Bundesbank, Joachim Nagel, insist that the objective of the project is a solution to maintain the Fíat money system.
