An executive of the European Central Bank (ECB), Jürgen Schaaf, has presented three key proposals to strengthen the role of the euro against the global advance of the stablecoins, especially those backed by US dollars.
In your report, Schaaf warns The rise of stable currencies is giving a new direction to international financesand could put both the financial stability of Europe and its monetary sovereignty at risk. However, he argues that, with an adequate strategy, the euro could be strengthened from this process.
The document begins by pointing out that Stablecoins, valued for their efficiency in international payments, have ceased to be a niche phenomenon. It is talk that its expansion, almost completely led by tokens supported in dollars, raises serious threats to the euro.
The specialist points out that More than 99% of the total capitalization of the Stablecoins market is dominated by dollar -based versions (USD)while the stable currencies anchored to the currency of the European Union remain marginal, with less than 350 million euros in circulation.
The Stablecoins market currently has a capitalization of more than USD 270,000 million, dominated mainly by two assets anchored to the value of the dollar: Tether (USDT) of the company Tether and USD Coin (USDC) of Circle, which represent 60% and 25% of the total respectively.
Schaaf states that this situation could limit the ECB’s ability to influence monetary conditions if the stablecoins called in dollars are massively adopted in the Eurozone.
Thus, the Executive considers that a possible digital dollarization would make financing for Europe, weaken monetary policy and increase the geopolitical dependence of the block with respect to the United States, whose government has already openly stated its intention to promote the global use of the dollar on digital platforms.
Faced with this scenario, he proposes three specific lines of action:
The first is to promote stablcoins called euros under high regulatory standards. Although the ECB has maintained a neutral position regarding these instruments, Schaaf acknowledges that underestimating its potential would be a strategic error.
Therefore, it ensures that Stablecoins in euros, if designed with strict standards of support, security and transparency, could cover legitimate needs of the market and, at the same time, strengthen the international role of the European currency.
The second is to advance with the digital euro. And the report highlights that this Central Bank digital currency (CBDC) is a fundamental pillar in the ECB strategy to strengthen the sovereignty of the Eurozone, offering an option for daily transactions, especially in points of sale.
The digital euro is planned to be launched in October, although this initiative has generated concerns about possible risks to individual freedoms. According to cryptootics, critics warn that, when operating in a fully traceable and centralized network, this currency could be transformed into an unprecedented surveillance and control tool.
Specifically, it worries that, in a system without cash, governments can restrict expenses or freeze accounts for political or social reasons, putting fundamental rights at risk.
Finally, The third proposed measure is to adopt a distributed registration technology (DLT) in wholesale financial markets. This to optimize payment infrastructure, especially in cross -border transactions, which still face high costs and delays.
Schaaf holds that the DLT, for example, allows the liquidation of tokenized financial assets directly in money from the Central Bank on a shared platform OA through custom interfaces.
In addition to these three alternatives, the Executive calls to strengthen global coordination in the regulation of the stablecoins. The absence of a common framework, warns, could increase the risks of instability, promote regulatory arbitration and consolidate the domain of the dollar in the digital field. In this context, it emphasizes that the comparative advantage of Europe lies in its solid institutional structure and its focus based on clear rules.
