Approval of an American law presses Europe
The European Union is accelerating plans for a digital euro. According to sources involved in the discussions, fears of the competitiveness of European digital currency increased after the new American Stablecoins (cryptocurrency legislation developed to maintain a fixed value or close to real -world assets).
The US Congress approved last month an unprecedented law that regulates the StableCoins market after strong pressure from the cryptocurrency industry. This market is valued at $ 288 billion and is mainly dominated by the dollar.
According to, a person involved in the discussions said that the approval of the law called “Genius Act” led European guardians to “rethink plans for the digital euro”
The possibility of launching the digital euro in a public blockchain, such as Ethereum or Solanainstead of a private network, as it was initially planned, it is being considered, but puts new concerns about privacy.
The European Central Bank (ECB) has been studying the creation of a digital Euro for several years, with the aim of offering a public and safe payment, adapted to an increasingly digital and less -dependent economy, while promoting the Euro globally.
The speed of events in Washington, DC seems to have changed the European rhythm. “The rapid approval of American law has shook many people,” said one of the sources of Financial Times, adding that: “We have to accelerate, we have to move forward.”
In the US, companies like Circle and Tether already operate Stablecoins Indexed in the dollar, while banks such as Citi and JPMorgan Chase consider launching their own cryptomosis. For Europe, this movement represents an increase in the global use of dollar -related digital assets and, consequently, a reduction in the influence of euro on trade and international payments.
The expansion of stablecoins indexed to the dollar can lead to “transfer of deposits in euros to the United States” and further reinforce the weight of the American currency in global financial flows, warned Piero Cipollone, a member of the ECB executive direction.
The choice of technological infrastructure has different implications. A digital euro based on a public network would have the advantage of being easily traded anywhere in the world, which could increase its circulation and reinforce the international role of the single currency. However, the total transparency of these blockchains raises concerns about the privacy of users.
On the other hand, the option of a private and controlled private network, similar to the model adopted by China in the development of the digital Yuan, would ensure greater protection and supervision, but would limit the interoperability and global reach of the project.
Currently there are already stablecoins Called in euros, such as the one launched by Circle, with a market capitalization of 225 million dollars. However, the creation of an official currency issued by the ECB would be a step towards consolidating the role of Europe in the sector.
“Europe cannot afford to depend excessively on foreign payment solutions,” Cipollone said in April.
