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

The President of the German Central Bank, Joachim Nagel, stated that euro-pegged stablecoins would provide Europe with more independence, allowing it to break free from the 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 introduction of a euro-pegged central bank digital currency and euro-denominated payment stablecoins. In a preparatory speech at the American Chamber of Commerce's New Year reception in Frankfurt on Monday, Nagel stated that EU officials are "working hard to advance" the launch of retail central bank digital currencies. He believes that euro-denominated stablecoins would 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 said, "I also see the value of euro-denominated stablecoins, as they can allow individuals and businesses to make cross-border payments at low cost." Nagel's comments come months after U.S. President Trump signed a bill to establish a regulatory framework for payment 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 undermined."