European Union officials are urging for accelerated development of euro-backed stablecoins, highlighting the need to lessen reliance on dominant U.S. dollar-based digital currencies. Speaking at a Fintech Forum in Paris on October 9th, European Stability Mechanism Managing Director Pierre Gramegna emphasized that Europe’s financial sovereignty cannot be secured by solely relying on dollar-backed stablecoins currently dominating global markets. The EU aims to foster the growth of Euro-denominated stablecoin solutions. While representing just $620 million of a $300 billion global market, this nascent sector is poised for expansion as European banks prepare to launch a euro-backed stablecoin in 2026 within the framework of MiCA legislation. The U.S. recently passed the GENIUS Act, requiring one-to-one backing of stablecoins with cash or liquid assets, intensifying competition and further fueling this dynamic.