EU Calls for Euro-Backed Stablecoins to Counter US Dollar Dominance in Crypto Markets

A senior EU official, Pierre Gramegna, has called for the creation of euro-backed stablecoins to challenge the dominance of US dollar-pegged tokens in global crypto markets. He argues that Europe must accelerate efforts to issue domestic stablecoins and strengthen its digital financial sovereignty. The digital euro initiative is gaining momentum, with ECB Executive Board member Piero Cipollone stating that a digital euro could be rolled out by 2029.

A senior European Union official, Pierre Gramegna, has called for the creation of euro-backed stablecoins to challenge the dominance of US dollar-pegged tokens in global crypto markets. Gramegna, managing director of the European Stability Mechanism (ESM), emphasized that Europe must accelerate efforts to issue domestic stablecoins and strengthen its digital financial sovereignty. His comments come amid growing concerns that the U.S. is gaining a decisive lead in the digital currency space, with the introduction of the GENIUS regulatory framework earlier this year spurring growth in dollar-backed stablecoins such as USDC and USDT “Europe Must Compete”: EU Official Demands Euro Stablecoins to Break US Dollar’s Monopoly^[1].

The digital euro initiative is gaining momentum, with ECB Executive Board member Piero Cipollone stating that a digital euro could be rolled out by 2029. Discussions among member states are progressing, and the European Parliament is expected to have a position on the legislative framework by early May 2026 “Europe Must Compete”: EU Official Demands Euro Stablecoins to Break US Dollar’s Monopoly^[1]. The digital euro is designed to reduce Europe’s reliance on private payment companies such as Visa and PayPal, while also curbing the influence of dollar-denominated stablecoins in the region.

However, several technical and policy questions remain unresolved, including privacy safeguards, bank coexistence, and whether the currency should operate on a public blockchain such as Ethereum or Solana. Supporters argue that euro stablecoins and a digital euro could reinforce Europe’s competitiveness in global finance, while skeptics warn that delays in regulation could leave the region further behind the U.S. in shaping the future of digital payments “Europe Must Compete”: EU Official Demands Euro Stablecoins to Break US Dollar’s Monopoly^[1].

European policymakers and financial institutions are intensifying efforts to develop euro-backed stablecoins. In July, European Central Bank (ECB) adviser Jürgen Schaaf called for stronger global coordination on stablecoin regulation, warning that gaps between U.S. and EU frameworks could reinforce dollar supremacy Hive Digital: Riding 2 Compelling Trends - Bitcoin And AI HPC Demand^[2]. Schaaf emphasized the need for properly regulated euro-denominated stablecoins, arguing they could strengthen Europe’s monetary sovereignty if designed with robust safeguards. The ECB has already approved two DLT pilot projects, Pontes and Appia, aimed at improving wholesale and cross-border payments Hive Digital: Riding 2 Compelling Trends - Bitcoin And AI HPC Demand^[2].

Nine of Europe’s largest banks, including ING, UniCredit, CaixaBank, and Danske Bank, have announced plans to jointly launch a euro-backed stablecoin in 2026. The consortium will seek licensing under MiCA and promises faster, cheaper, and 24/7 cross-border transactions Hive Digital: Riding 2 Compelling Trends - Bitcoin And AI HPC Demand^[2]. This initiative highlights Europe’s growing determination to reduce reliance on U.S. stablecoins, which account for roughly 99% of global supply. ECB data shows euro-pegged tokens remain below €350 million in circulation, a gap European regulators and banks now appear intent on closing Hive Digital: Riding 2 Compelling Trends - Bitcoin And AI HPC Demand^[2].