European banks to launch Euro Stablecoin in an offer to combat American dominance

A consortium of nine European banks, including heavyweights and Unicredit, said on Thursday that they are a new company to launch a euro-bound Stablecoin, a movement that they hope will combat the American digital market dominance.

A large number of best American financial companies have prepared for the launch of their own dollar-supported Crypto-Tokens after President Donald Trump had investigated a law that supervised rules for Stablecoins that could continue to cement the American hegemony.

The use of stablecoins – designed to maintain constant value and supported by traditional currencies – has exploded in recent years, in particular among crypto traders who move funds to and to more volatile tokens. But they are also used in regular digital payments and cross -border transactions. The new company in Amsterdam in the European banks is expected to launch its Stablecoin in the second half of next year.

American stablecoin dominance, ECB remains skeptical

While the global Stablecoin issue is almost $ 300 billion, Euro-Covered Stabilecoins amounted to only $ 620 million, according to figures released by the bank or Italy last week, with Dollar-Pegers who are overwhelmingly dominant.

“The initiative will offer a real European alternative to the US-dominated Stablecoin market, which contributes to the strategic autonomy of Europe in payments,” said the banks.

They launched the effort that they said it will create a token that can be used for fast, cheap payments and settlements, even if the European Central Bank votes skepticism about Stablecoins.

ECB President Christine Lagarde told European policy makers in June that private Stablecoins were risks for monetary policy and financial stability. As a safer alternative, she has encouraged European legislators to introduce legislation to support the launch of a digital version of the only currency of the EU.

However, some commercial banks have pushed back against the introduction of a digital euro, for fear that it would empty their treasury while customers would transfer cash from banks and to the safety of an ECB-Gegarandende Wallet.

Europe under pressure, the risk of being left behind

In addition to ING and Unicredit, the other banks participating in the new company include Banca Sella, KBC, Dekabank, Danske Bank, Seb, Caixabank and Raiffeisen Bank International.

They said that others participated in the initiative and that a CEO for the company would soon be appointed.

A recent report from Deutsche Bank emphasized that, in particular, emerging market economies are accepting dollar-based Stablecoins to replace local deposits and cash.

“This has created a worldwide monetary dilemma: countries must assume stablecoins or run the risk of being left behind. Europe is under special pressure,” the report said.

The crypto-arm of Societe General, SG-Forge, launched a euro-based Stablecoin in 2023, although it was not held on a large scale, with only 56.2 million euros ($ 66 million) in circulation, according to its website. Earlier this year, the French bank also launched a Stable-Dollar Stablecoin, with a circulation of only $ 32.25 million.

Bank of America and Citigroup belong to the American banks that have considered publishing their own Stablecoins. However, few banks have launched one and the industry remains dominated by non-bank players such as Tether and Circle.

($ 1 = 0.8513 euros)