“EU Official States, ‘Europe Must Not Rely on US Dollar-Denominated Stablecoins,’ ECB Increases Support”
The Fintech Forum in Paris on 9th October 2025 featured a prominent EU official raising concerns, indicating that the EU must hasten its initiatives to create Euro-backed stablecoins – lest it face challenges from the US in the global digital payment arena.
Emphasizing the necessity of Euro-backed stablecoins, Pierre Gramegna, Managing Director of the European Stability Mechanism (ESM), stated, “Europe should not rely on US dollar-backed stablecoins, which currently dominate the markets. Stablecoins are an essential component of this equation.”
“In an ever-changing financial environment, Europe must make every effort to promote the emergence of euro-denominated stablecoins from local issuers,” he further remarked.
Currently, Euro stablecoins represent only $620 million of a $300 billion market.
A significant morning in Paris – marking a pivotal moment for Europe’s stablecoin prospects.
During the opening of the Fintech Forum in Paris, François Villeroy de Galhau, Governor of the Banque de France, gave an extraordinary speech – the most proactive ever by a European central… pic.twitter.com/Fx1c5PxNKr
— Raphaël Bloch
(@Raph_Bloch) October 9, 2025
Paschal Donohoe, the Eurogroup president, highlighted that “the digital euro could still benefit commerce in the region.”
In July 2025, the European Central Bank (ECB) also advocated for enhanced global strategic alliance regarding stablecoin crypto law.
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US Outpacing Europe In The Digital currency Competition, Especially Since GENIUS Act
Concurrently, François Villeroy de Galhau, Governor of the Banque de France, stated, “If banks are exploring the dollar stablecoin market – why not? That’s where the market resides today. However, they should also target their natural trading market for the future: euro stablecoins.” He expanded on this, asserting that the existence of tokenized deposits and euro stablecoins from regulated banks is crucial for the future of Europe’s monetary structure. De Galhau remarked, “We could support both, but we mustn’t end up with neither.”
The GENIUS Act implements a straightforward rule: every stablecoin must be supported one-to-one by cash or liquid assets, and issuers are required to disclose these reserves publicly. Recently, the US enacted this stablecoin legislation as part of a broader initiative. Along with the GENIUS Act, the House passed the CLARITY Act and the Anti-CBDC Surveillance State Act. The CLARITY Act aims to give increased oversight of crypto markets to the CFTC, while the Anti-CBDC bill seeks to obstruct any attempts by the Federal Reserve to pursue a digital dollar.
Read More: Launch Of Euro-Backed Stablecoin In H2 2026? Nine European Banking Giants Join Forces
Launch Of Euro-Backed Stablecoin In H2 2026?
A coalition of nine leading banks in Europe—including ING, UniCredit, Danske Bank, SEB, KBC, DekaBank, Banca Sella, and Raiffeisen Bank International—have agreed to collaborate on a euro-backed stablecoin. Within the framework of the European Union’s (EU) Markets in Crypto-Assets Crypto law (MiCA), these banks are set to launch the stablecoin in the latter half of 2026. Will this initiative transform European crypto payments? Will the introduction of a euro-backed stablecoin lessen Europe’s dependence on US dollar-backed stablecoins?
On 25 September 2025, ING issued a joint declaration affirming that “the initiative will provide a genuine European alternative to the US-dominated stablecoin market, aiding Europe’s strategic autonomy in payments.”
According to the collaborating banks, the stablecoin will enable rapid, low-cost transactions and settlements. It will also facilitate around-the-clock efficient cross-border payments, programmable payment solutions, as well as enhancements in supply chain management and digital asset settlements, spanning from securities to cryptocurrencies.
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Key Takeaways
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The digital euro is perceived as the EU’s premier response to US influence.
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As the EU approaches the conclusion of its digital euro legislation and as major banks prepare for their stablecoin release.
The post “Europe should not be reliant on US dollar-denominated stablecoins,” Says EU Official, ECB Extends Price floor appeared first on 99Bitcoins.
