TechFlow news, on July 4, according to the Financial Times, Lorenzo Bini Smaghi, chairman of Société Générale and former member of the Executive Board of the European Central Bank, said that Europe needs to overcome its fear of stablecoins and actively embrace this technology. Currently, nearly 99% of stablecoins are issued in the United States and denominated in U.S. dollars, leaving the euro largely marginalized in this emerging digital financial ecosystem.
Bini Smaghi pointed out that stablecoins represent a technological breakthrough enabling fast, low-cost, cross-border peer-to-peer transactions. The EU has established a comprehensive regulatory framework through the Markets in Crypto-Assets Regulation (MiCA), requiring stablecoin issuers to hold high-quality liquid reserves, but Europe still lags far behind the United States.
He warned that if Europe does not actively promote the issuance and use of euro-denominated stablecoins, deposits in the eurozone could shift to foreign platforms and Europe's payment system could be disintermediated, ultimately jeopardizing European monetary sovereignty. The European Central Bank should play a leading role in coordinating regulation and innovation around stablecoins.
