Nine major European banks are creating a Netherlands-based company to launch a euro-backed stablecoin in 2026, aiming to counter US dominance in the digital token market.
Reuters reports :
While global stablecoin issuance stands at nearly $300 billion, euro-denominated stablecoins totaled just $620 million, according to data released last week by the Bank of Italy, with dollar-pegged tokens overwhelmingly dominating.
“The initiative will offer a true European alternative to the US-dominated stablecoin market, contributing to Europe’s strategic autonomy in payments,” the banks said.
So they launched an effort, which they said would create a token that can be used for fast, low-cost payments and settlements, even as the European Central Bank expresses skepticism about stablecoins.
ECB President Christine Lagarde told European policymakers in June that privately issued stablecoins pose risks to monetary policy and financial stability.
So as a safer alternative, he urged European lawmakers to pass legislation supporting the circulation of a digital version of the EU's single currency.
However, some commercial banks are resisting the introduction of a digital euro, fearing that it would empty their coffers as their customers would continue to transfer cash from banks to the safety of a wallet guaranteed by the ECB itself.
In addition to ING and UniCredit, other banks participating in the new company include Banca Sella, KBC, DekaBank, Danske Bank, SEB, Caixabank and Raiffeisen Bank International. Many more could join the initiative and a CEO for the company will be appointed soon.
According to a recent report by Deutsche Bank, emerging market economies are steadily adopting dollar-based cryptocurrencies to replace local deposits and cash.
“This has created a global monetary dilemma: countries will have to adopt stable cryptocurrencies or risk being left behind. Europe is under particular pressure.”
Although the press releases will range from very select to rare, I said I'd pass...because sometimes the editors hide.
