European Banks Unite to Launch Euro Stablecoin, Challenging U.S. Dominance

Challenging The Dominance of the Dollar

The move comes as U.S. dollar-pegged stablecoins dominate the $300 billion global market, while euro-denominated ones make up less than 1%. The consortium hopes its digital euro token will offer faster, low-cost transactions and promote Europe’s financial autonomy amid increasing U.S. influence.

However, the European Central Bank (ECB) remains cautious. President Christine Lagarde has warned that privately issued stablecoins pose risks to monetary stability and continues to push for a digital euro under ECB supervision.

Despite regulatory hesitation, analysts say Europe faces growing pressure to innovate. As emerging economies adopt dollar-based stablecoins, Europe’s new initiative could mark a pivotal moment in the region’s digital currency evolution.