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President of the German Central Bank: Euro stablecoins will provide Europe with more independence to break free from the influence of dollar stablecoins

According to Cointelegraph, the President of the German Central Bank, Joachim Nagel, stated that stablecoins pegged to the euro would provide Europe with more independence, allowing it to move away from dollar-pegged stablecoins that are set to be approved under the "GENIUS Act."Joachim Nagel, the President of the Deutsche Bundesbank (German Central Bank), supports the launch of a central bank digital currency pegged to the euro as well as payment-type stablecoins denominated in euros. In a preparatory speech at the American Chamber of Commerce's New Year reception in Frankfurt on Monday, Nagel mentioned that EU officials are "working hard" to advance the rollout of retail central bank digital currencies. He believes that euro-denominated stablecoins will also help "make Europe more independent in terms of payment systems and solutions.""It is worth noting that wholesale central bank digital currencies will enable financial institutions to make programmable payments using central bank money," Nagel stated. "I also see the value of euro-denominated stablecoins, as they can allow individuals and businesses to make cross-border payments at a low cost."Nagel's remarks come months after U.S. President Trump signed a bill to establish a regulatory framework for payment-type stablecoins in the country. This legislation could pose a challenge to any potential euro-pegged stablecoins. The law is expected to be fully implemented 18 months after signing or 120 days after relevant regulations are finalized. The German central bank president's comments on stablecoins did not mention the risks he referred to at the Euro50 Group meeting last week.Nagel warned that if the market share of dollar-denominated stablecoins significantly exceeds that of euro-pegged stablecoins, domestic monetary policy "could be severely compromised, not to mention that Europe's sovereignty could be weakened."
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