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2025-07-28 18:13:54
[Is the sovereignty of the euro challenged again? The ECB warns: US dollar stablecoins may push up European borrowing costs] ⑴ A blog post by the European Central Bank warns that the dominance of US dollar stablecoins may threaten Europe's monetary autonomy. ⑵ The article points out that this will bring strategic and economic advantages to the United States, enabling it to finance debt at a lower cost and enhance its global influence. ⑶ For Europe, this means relatively higher financing costs, reduced monetary policy autonomy, and increased geopolitical dependence. ⑷ At present, US dollar stablecoins issued by Tether and Circle dominate the global market, while the market value of euro stablecoins is negligible, less than 350 million euros. ⑸ The article emphasizes that if US dollar stablecoins are widely used in the euro area, the ECB's control over monetary conditions may be weakened. ⑹ To meet this challenge, Europe should accelerate the launch of the digital version of the euro and encourage the development of more euro-based stablecoins. ⑺ The article finally calls for stronger global coordination of stablecoin regulation to avoid instability, regulatory arbitrage, and increased dominance of the US dollar.
