EU Pushes for Euro-Denominated Stablecoins to Counter Dollar Dominance

The European Union is taking steps to diversify its reliance on US dollar-denominated stablecoins by encouraging the development of euro-denominated versions. Pierre Gramegna, managing director of the European Stability Mechanism, emphasized this need during a recent hearing on the EU’s economic health, highlighting the growing dominance of US dollar-based stablecoins in the market. He called for increased domestic issuance of euro-denominated stablecoins and for Europe to embrace financial innovation through stablecoins and tokenized assets.