Europe Needs Euro-Based Digital Payment Instruments
The President of the Deutsche Bundesbank stated the need to introduce a retail digital euro (CBDC) and issue euro-pegged stablecoins to strengthen the EU’s independence in payments amid tightening regulation of dollar stablecoins in the U.S.
Joachim Nagel, President of the Deutsche Bundesbank, spoke at a reception hosted by the American Chamber of Commerce in Germany in Frankfurt. In his speech, he supported the launch in Europe of a retail version of a central bank digital currency (CBDC).
According to Nagel, the digital euro would become the first pan-European retail digital payment system fully based on European infrastructure, enhance the EU’s payment sovereignty, and reduce dependence on U.S. dollar solutions.
The head of the Bundesbank also supported the use of euro-pegged stablecoins, pointing to their potential in cross-border transfers for both individuals and businesses due to low costs and high transaction speeds. At the same time, he emphasized that the dominance of dollar stablecoins could seriously undermine European monetary policy and weaken sovereignty.
In a broader context, Nagel stated that the EU and the U.S. account for 30% of global trade and 44% of global GDP, while mutual direct investments reached €5.4 trillion. Against this, strengthening the euro’s international role and developing proprietary payment solutions are key priorities for Europe amid geoeconomic fragmentation.
Nagel’s statement came against the backdrop of the signing of the GENIUS Act in the United States, aimed at creating conditions for scaling the use of dollar stablecoins. At the same time, the U.S. Senate is discussing the CLARITY Act, which proposes comprehensive regulation of the digital asset market. However, the bill sparked disagreements between representatives of the banking sector and the crypto industry.
Meanwhile, the European Central Bank (ECB) announced the completion of the preparatory phase of work on the digital euro, during which a draft regulation was presented and suppliers for various technological components of the CBDC were selected. To learn how the digital euro will reshape the role of banks and contribute to the evolution of Europe’s financial system, read the exclusive interview by CP Media with the Executive Director of the Digital Euro Association.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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