Ex-ECB Official Urges Europe to Back Euro Stablecoins or Risk Losing Financial Power

Stablecoins grow rapidly. Most of the $ 255 billion sectors are currently concentrated in chips supported in the US dollar, which, according to the total number, represent $ 241 billion RWA.XYZ data.

Former member of the Board of Directors of the European Central Bank and Chairman of Société Générale, Lorenzo Bini Smaghi, said the imbalance could build Europe in the next stage of global financing.

Writing in Financial timesBini Smaghi noted that the European Union already has markets in crypts (Mica) A law that forces issuers to support cash tokens and high -quality sovereign bonds.

Bloc also controls the pilot mode for trading in distributed books. However, the Euro hardly contains the Euro on the Stablecoin market because banks and politicians avoid new technology, he wrote.

Société Générale, it is worth adding, launched his own eUro-under-edged stabnecoin back in 2023. Last month also launched a US dollar supported.

He says that hesitation risks European monetary sovereignty. If consumers and companies receive dollar stablecoins for everyday payments and savings, deposits could forgive from euro-aarous banks to US-related platforms.

This shift would disrupt the adhesion of the ECB on money and dull its ability to control rates or calm markets, Bini Smaghi added. He claimed that the regulators should lean, not to block progress.

By sponsoring tokens and coordination standards, the ECB sponsor the ECB to modernize cross -border payments and help unify European capital markets.

If Europe remains on the sidelines, “he will accept his marginalization in the future of global finances,” he wrote.