| What to Know: – Bundesbank’s Nagel supports euro stablecoins to reduce cross-border payment costs. – Endorsement aims to strengthen European payments sovereignty through euro-denominated stablecoins. – Advocates euro stablecoins as tools for cheaper transactions and greater monetary independence. |
Germany’s Bundesbank President Joachim Nagel has promoted euro-denominated stablecoins as a way to lower cross-border payment costs and strengthen Europe’s independence in payments, alongside work on a digital euro, according to Cointelegraph. In the same remarks, he warned that dominance of U.S. dollar stablecoins in Europe could weaken monetary sovereignty and impair the transmission of ECB policy.
Olaf Sleijpen, an ECB Governing Council member, warned that rapid growth could push stablecoins toward systemic relevance, where a mass redemption episode might force monetary-policy adjustments, as reported by Yahoo Finance. Such tail risks underscore why supervisors are scrutinizing liquidity, reserve quality, and interoperability.
Risk assessments are not uniform across officials. Luis de Guindos has argued that the most acute stablecoin vulnerabilities currently sit in the U.S. rather than the EU, according to CentralBanking.com. Even so, he has emphasized the need for coherent, non-fragmented European responses as scale increases.
Under the EU’s MiCA regulation and safeguards pressed by ECB President Christine Lagarde, euro-denominated stablecoins are expected to track the euro, be backed by transparent reserves, and allow full redemption at par, according to CoinDesk. These requirements are intended to reduce run risk, improve transparency, and align private issuers with public-policy objectives.
In practice, that structure aims to lower fees and speed up transfers for consumers and SMEs, especially across borders. “Euro-denominated stablecoins can be a valuable tool for cheap international transfers,” as reported by Bloomberg.
Private stablecoins and a digital euro would serve different functions. A digital euro would be a central bank liability with public-sector governance, whereas private coins depend on issuer reserve management and compliance with MiCA; coexistence would hinge on design choices, market demand, and effective enforcement.
At the time of this writing, shares of Coinbase Global (COIN) were around $164.81 in after-hours trading, with the stock closing near $164.32, based on data from Nasdaq. This market context is descriptive and does not imply any view on stablecoin adoption or prices.
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