German Central Bank Governor: Euro Stablecoin Will Provide Europe with More Independence to Escape the Influence of Dollar Stablecoins

BlockBeats News, February 17: Joachim Nagel, President of the Deutsche Bundesbank, stated that a stablecoin pegged to the euro would provide Europe with more independence to break free from the soon-to-be-approved USD-pegged stablecoins under the "GENIUS Act."

Joachim Nagel, President of the Deutsche Bundesbank, supports the introduction of a central bank digital currency pegged to the euro and euro-denominated payment stablecoins. In a keynote speech at the American Chamber of Commerce's New Year's reception in Frankfurt on Monday, Nagel stated that EU officials are "working hard" to launch a retail central bank digital currency. He believes that euro-denominated stablecoins also help "make Europe more independent in terms of payment systems and solutions."

"It is noteworthy that wholesale central bank digital currencies will enable financial institutions to engage in programmable payments using central bank money," Nagel stated. "I also see the value of euro-denominated stablecoins as they can enable individuals and businesses to conduct low-cost cross-border payments."

Nagel's remarks come as it has been months since U.S. President Trump signed a bill to establish a regulatory framework for the country's payment stablecoins. This bill could pose a challenge to any potential euro-pegged stablecoins. The law is expected to be fully implemented 18 months after signing or 120 days after the finalization of relevant regulations.

The Deutsche Bundesbank President's comments on stablecoins did not mention the risks he raised at last week's Euro50 Group meeting. Nagel warned that if the market share of USD-denominated stablecoins significantly surpasses that of euro-pegged stablecoins, domestic monetary policy "may be severely impaired, not to mention Europe's sovereignty potentially being weakened."