Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Digital Euro Won’t Challenge Dollar’s Stablecoin Dominance

Digital Euro Won’t Challenge Dollar’s Stablecoin Dominance

KriptoworldKriptoworld2025/07/31 02:20
By:by kriptoworld

The European Central Bank (ECB), through advisor Jürgen Schaaf , is facing reality: launching a digital euro alone won’t shake the U.S. dollar’s stronghold on the global stablecoin market. It’s not that simple anymore.

CBDCs Alone Aren’t Enough

In the past, fiat currencies like the dollar and euro ruled clearly defined financial systems.

But today, the cryptocurrency landscape is evolving fast — and dollar-backed stablecoins have taken a commanding lead.

These digital assets, pegged to the U.S. dollar, are convenient, trusted, and difficult to compete with.

Schaaf, speaking via the ECB’s official channels, made it clear: a central bank digital currency ( CBDC ) isn’t a silver bullet.

Europe will need euro-pegged stablecoins from the private sector to truly modernize its currency model and remain relevant.

It’s like trying to launch a new coffee brand when Starbucks already owns the office fridge — you need more than just a label change.

Europe Lagging Behind

A digital version of the euro isn’t enough unless it’s paired with real innovation. Schaaf emphasized the need to fully embrace blockchain.

The ECB is already testing pilot projects like Pontes and Appia, which aim to make cross-border transfers and large financial settlements faster, more efficient, and cheaper.

Still, Europe is trailing. Despite regulatory efforts like MiCA, euro-backed stablecoins are far behind their U.S. counterparts — both in market share and infrastructure. Europe risks showing up late to a tech party where the dollar’s already DJing.

Not a Sprint, But a Marathon

Schaaf didn’t mince words: Europe needs a full strategic toolkit. That means a balanced collaboration between public regulation and private sector energy, synchronized international rules, and bold innovation.

Because at the heart of it all lies monetary sovereignty — Europe’s ability to control its own money supply and influence financial stability.

The digital euro may not dethrone the dollar tomorrow. But the race has begun, and it’ll take a marathon mindset — not a sprint — to catch up and compete.

0
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Glassnode: Bitcoin weakly fluctuates, is major volatility coming?

If signs of seller exhaustion begin to appear, it is still possible in the short term for bitcoin to move towards the $95,000 level and the short-term holder cost basis.

BlockBeats2025/12/12 14:44
Glassnode: Bitcoin weakly fluctuates, is major volatility coming?

Axe Compute (NASDAQ: AGPU) completes corporate restructuring (formerly POAI), enterprise-level decentralized GPU computing power Aethir officially enters the mainstream market

Predictive Oncology officially announced today that it has changed its name to Axe Compute and will trade on Nasdaq under the ticker symbol AGPU. This rebranding marks Axe Compute's transition into an enterprise-level operator, officially commercializing Aethir's decentralized GPU network to provide robust, enterprise-grade computing power services for AI companies worldwide.

BlockBeats2025/12/12 14:42
Axe Compute (NASDAQ: AGPU) completes corporate restructuring (formerly POAI), enterprise-level decentralized GPU computing power Aethir officially enters the mainstream market
© 2025 Bitget