A 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.
“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.
European officials worry that continued reliance on U.S.-issued tokens could undermine the EU’s control over its financial system and payment infrastructure.
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.
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. He described recent talks as a “major breakthrough” after euro area finance chiefs reached consensus on customer holding limits to protect bank deposits.
“The digital euro could still be a net positive for commerce in the region,” he said.
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.
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.
