A Central Bank Digital Currency (CBDC) is not enough to challenge the increase of US dollar-pegged stablecoins, according to an European Central Bank (ECB) advisor.
In a blog post Na -Published Monday on ECB’s official website, advisor Jürgen SchaaF has drafted a set of strategic options for the European Union to meet the rapid rising of dollars based on the dollar.
Among these options are Euro-Pegged Stablecoins controlled, distributing Ledger Technology (DLT) applications and the continued development of the digital euro.
He also emphasized the role of stronger global coordination with stablecoin regulation, which features differences -Stablecoin regulation between US Genius Act And the EU markets in crypto-assets (MICA) regulation.
Euro -based euro as first lever
“First, more support can be provided for properly regulated euro-denominated stablecoins,” Scharaf wrote, suggesting that Stablecoins-rather than the digital euro-will be the EU’s main response to the US Stablecoin Push.
“While the neutrality of public institutions is often preferred, a strategic blind spot in this space can prove expensive,” said ECB advisor, added:
“Euro -based euro, if designed to high standard and effective risk of risk, can provide legitimate market needs. They can also strengthen Euro’s international role.”
Some studies have previously highlighted the slow rate of adoption of European-based stablecoins.
In May, former ECB official and Bank of Italy Governor Fabio Panetta said the Euro-Pegged Stablecoins circulation remained limited Despite frameworks such as Mica attempts to promote their use.
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Panetta also argued that the digital euro would be the key to addressing the issue of the slow adoption of Euro Stablecoins.
ECB looks beyond digital euro
The SchaaF, however, has confirmed the digital euro as just a part of a larger digital payment approach. He said that the public CBDC, along with private changes and DLT applications, could act as auxiliary columns in cautioning European financial sovereignty.
“In point-of-interaction payments, the digital euro promises a stable line of European sovereignty defense,” he added.
Related: Shanghai officials are hot -warming to stablecoins across China Crypto Ban: Report
While not stretching the digital euro, Scharaf focuses on the use of Shared Ledger Technology (DLT) As another option, stating that technology offers improvements for domestic wholesale payments and cross-border payments.
In early July, the ECB Approved Two DLT-Pontes and Appia pilot projects-aimed at strengthening European cross-border payment and infrastructure.
EU to decide on the digital euro in 2025
SchaaF’s latest comments bring fresh evidence that Europe is considering a multi-pronged approach to respond to the US Stablecoin leadership rather than focusing on just one initiative, such as the digital euro.
Europe remembers US leadership in digital financial technology soon after US president Donald Trump signed an executive command promise to boost US dollar sovereignty by promoting stablecoins in January.
ECB officials have repeatedly approached the issue ever since, along with board member Piero Cipollone who has been focusing on Digital Euro can help EU Maintain Eurozone’s financial sovereignty.
Then Moving Digital Euro In the “preparation stage” in November 2023, ECB officials have not yet decided on its launch. According to In the ECB, the ECB Governing Council will decide whether to continue the next stage of preparation by the end of 2025.
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