10 EU Banks Plot Euro Stablecoin Launch: Direct Challenge to US Dollar Dominance?
Forget waiting for a digital euro from the ECB. A consortium of ten major European banks is taking matters into their own hands, quietly building a euro-pegged stablecoin to rival the dollar's grip on global finance.
The Institutional Play for Digital Sovereignty
This isn't a DeFi experiment. It's a coordinated move by established financial giants to create a regulated, bank-issued digital currency for cross-border payments and settlements. The goal? To carve out a digital eurozone that operates faster, cheaper, and outside traditional dollar-clearing networks.
Why This Threatens the Greenback's Throne
The US dollar's dominance isn't just about reserve status; it's about the plumbing. SWIFT, correspondent banking—it's a system built around the dollar. A widely adopted euro stablecoin from trusted banks could let European trade bypass that plumbing entirely. It offers a sanctioned, institutional-grade alternative for entities spooked by US monetary policy or geopolitical leverage.
The Uphill Battle for Adoption
Creating the token is the easy part. The real fight is for liquidity and mindshare. Can they dethrone the entrenched network effects of USDT and USDC, which are themselves proxies for the dollar? It's the financial equivalent of trying to get the world to switch from English to a new lingua franca—possible, but you'll need more than a good dictionary.
One cynical finance jab: Nothing unites European banks like the shared dream of creating a new fee-generating asset—and the shared nightmare of American financial hegemony.
The message is clear. The race for digital currency supremacy is no longer between crypto anarchists and central banks. It's between continents. If these ten banks succeed, they won't just launch a stablecoin; they'll fire the loudest shot yet in the battle to reshape the global monetary order. The dollar's long, comfortable reign might finally be getting some unwelcome competition.
Will a Euro Stablecoin Challenge the US Dollar?
The is no denying the fact that the USD has lost substantial lustre over the last few years. Many countries have begun hedging against the dollar, while others are moving to alternative options. However, many expect the stablecoin era to bring back the dollar’s charm. A majority of the global stablecoins are pegged to the USD. The rise in stablecoin popularity has indirectly led to a rise in the dollar’s dominance within the crypto space.
The rise of a euro-pegged stablecoin could challenge the dollar-based stablecoin market. Moreover, the euro stablecoin is backed by some of the most renowned banks in the world. On the other hand, USD-pegged coins are not backed by big banks. Investors could get behind Qivalis’s upcoming euro-pegged coin, simply based on its backers.
However, it WOULD be wrong to question the US dollar’s global position. Dollar-pegged stablecoins continue to dominate the market and will likely continue to do so for the foreseeable future. Dollar-based stablecoins are also expected to bring more stability to the USD, while also countering the global exodus away from the greenback. According to Citi, the global stablecoin market may hit $1.9 trillion in its base case and $4.0 trillion in its bull case.
