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Oct 10, 2025A senior European Union official has called for the creation of euro-backed stablecoins to challenge the dominance of U.S. dollar-pegged tokens in global crypto markets.
Pierre Gramegna, managing director of the European Stability Mechanism (ESM), said Europe must accelerate its efforts to issue domestic stablecoins and strengthen its digital financial sovereignty.
“Europe should not be dependent on U.S. dollar-denominated stablecoins, which are currently dominating markets,” Gramegna said during a Thursday hearing on the eurozone’s economic outlook, where digital assets were among the topics discussed.
He added that “Stablecoins are an inevitable part of this equation. In a rapidly evolving financial landscape, Europe should do its best to facilitate the generation of euro-denominated stablecoins by domestic issuers
Digital Euro Gains Momentum as EU Debates Strategy to Counter U.S. Crypto Lead
Gramegna’s comments come amid growing concerns that the U.S. is gaining a decisive lead in the digital currency space following the introduction of the GENIUS regulatory framework earlier this year, which spurred growth in dollar-backed stablecoins such as USDC and USDT.
European officials worry that continued reliance on U.S.-issued tokens could undermine the EU’s control over its financial system and payment infrastructure.
Momentum is already building behind the digital euro initiative. According to ECB Executive Board member Piero Cipollone, the central bank could roll out a digital euro by 2029 as discussions among member states progress.
Europe Steps Up Stablecoin Push to Counter U.S. Dollar Dominance
European policymakers and financial institutions are intensifying efforts to develop euro-backed stablecoins, seeking to counter the overwhelming dominance of U.S. dollar-pegged tokens.
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.
Writing on the ECB’s website, Schaaf urged support for “properly regulated euro-denominated stablecoins,” arguing they could strengthen Europe’s monetary sovereignty if designed with robust safeguards.
The ECB adviser’s remarks follow earlier concerns from Bank of Italy Governor Fabio Panetta, who noted the limited adoption of euro stablecoins despite MiCA’s rollout.
At the same time, 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.
Source >> Europe Must Compete”: EU Official Demands Euro Stablecoins to Break US Dollar’s Monopoly