EU Calls for Euro-Based Stablecoin Development to Challenge US Dollar Dominance

European policymakers are advocating for the creation of euro-denominated stablecoins to reduce the EU’s reliance on U.S.-backed digital assets. Pierre Gramegna, managing director of the European Stability Mechanism (ESM), emphasized the need for Europe to foster financial innovation in the burgeoning stablecoin market currently dominated by dollar-based tokens. During a hearing on the eurozone’s economic outlook, Gramegna stated that Europe needs to adapt to the rapidly changing financial landscape and move away from U.S.-dollar-dominated stablecoins.