The European Central Bank (ECB) is expressing growing concern over the rise of US dollar-pegged stablecoins in Europe, advocating for a digital euro to safeguard the eurozone's monetary sovereignty. Piero Cipollone, an ECB executive board member, emphasized that a digital euro could reduce dependence on foreign stablecoins, which he views as a threat to Europe’s financial system. He noted that cash, while crucial for financial inclusion, cannot be used online, leading to an increased reliance on non-European payment systems. Cipollone stated that the implementation of a digital euro, aligned with EU legislation, is essential to prevent euro deposits from being moved to the US and strengthen the euro's role in cross-border payments. His remarks reflect a broader agenda to protect Europe's monetary landscape by fostering a public-private partnership. However, there are challenges, including data privacy concerns, which have led to lukewarm public interest in the digital euro proposal.

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