Europe is playing catch-up in the global money race. According to Joachim Nagel, president of the Deutsche Bundesbank, the region is now looking more seriously at euro-denominated stablecoins!
Digital money for financial independence
Nagel recently said that Europe should support euro-denominated stablecoins, a wholesale central bank digital currency (CBDC), and a digital euro to strengthen the region’s financial sovereignty.
At the New Year’s Reception of the American Chamber of Commerce in Frankfurt, he said,
The European Union and the United States are connected economically, with around €5.4 trillion in mutual investment stock and a partnership that accounts for roughly 30% of global trade and 44% of global GDP.
But now, Europe is considering strategic independence.
Challenges to growth
Nagel said that Europe is facing economic pressure from protectionism and global trade tensions, which are slowing growth and hurting competitiveness.
Source: Bundesbank.de
Even though Europe has a large single market, its financial system is still fragmented. This makes it harder for startups and innovative companies to get funding compared to the United States.
Three priorities
To address these challenges, Nagel put out three main priorities. First, he urged Europe to simplify regulations and reduce administrative burdens.
The second is to advance the Savings and Investments Union, which could unlock private capital and improve funding for innovation and digital infrastructure.
He also emphasized the strengthening of the euro’s global role.
This includes building independent European payment systems, launching a digital euro for consumers, exploring wholesale CBDCs for financial institutions, and supporting euro-based stablecoins for cheaper cross-border payments.
He stated,
Final Summary
- Europe wants to compete with dollar-based digital finance.
- With €5.4T in US-EU investment ties, this has major economic stakes.
Source: https://ambcrypto.com/does-europe-need-euro-pegged-stablecoins-bundesbank-chief-says/
