EU Official Advocates for Euro Stablecoins to Challenge US Dollar Dominance

Pierre Gramegna, managing director of the European Stability Mechanism, has urged the EU to prioritize the development of euro-denominated stablecoins. His remarks underscore growing concerns over the bloc's reliance on dollar-pegged tokens like USDT and USDC, which dominate global crypto markets.

The push aligns with broader efforts to advance a digital euro strategy, as European policymakers seek to counter perceived U.S. advantages in digital currency regulation. The recently introduced GENIUS framework in America has accelerated adoption of dollar-based stablecoins, raising sovereignty questions for EU financial systems.

Eurogroup President Paschal Donohoe and other officials increasingly view domestic stablecoin issuance as critical for maintaining control over payment infrastructure. "Europe should do its best to facilitate euro-denominated stablecoins," Gramegna stated during a eurozone economic hearing, framing the issue as one of financial autonomy.