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Bundesbank Chief Endorses Euro Stablecoins as Europe Accelerates Digital Euro Push

Germany signals a two-track strategy to bolster payment sovereignty through public CBDCs alongside regulated private tokens.

Overview

  • Joachim Nagel said euro‑denominated stablecoins have merit for cheaper, more efficient cross‑border payments for consumers and firms.
  • He confirmed the EU is working on a retail digital euro intended to be the first pan‑European payment solution built solely on European infrastructure.
  • Nagel reported important exploratory work on a wholesale CBDC that would let financial institutions make programmable payments in central bank money.
  • ECB officials warned that the rising share of dollar‑pegged tokens could impair euro‑area monetary transmission and weaken policy effectiveness.
  • Analysts at S&P Global projected euro stablecoins could reach up to €1.1 trillion by 2030, as the U.S. GENIUS Act spurred dollar‑token growth while a key market‑structure bill stalled.