Joachim Nagel, member of the European Central Bank (ECB) Governing Council and President of the Bundesbank, has confirmed his support for euro stablecoins, asserting they are a key tool for modernizing digital payments. During an event at the American Chamber of Commerce in Germany, Nagel highlighted that stablecoins facilitate low-cost international transfers for companies and individuals, complementing current efforts to develop an official digital euro.
This shift in stance reflects a growing need for independence in European payment systems against the hegemony of dollar-linked assets. The Trump administration’s push toward cryptocurrencies has increased fears of a potential digital “dollarization” that could threaten the region’s monetary sovereignty, positioning tokenized deposits and local stablecoins as strategic shields for the bloc’s financial stability.
From now on, the market must monitor how the Eurosystem will integrate these instruments based on distributed ledger technology (DLT) without compromising central bank control. The evolution of this institutional support will be decisive for the mass adoption of private euro payment solutions and their coexistence with traditional financial infrastructure in the coming years.
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