The European Union is speeding up its plans to develop a digital euro, prompted by recent US actions in the stablecoin regulatory space. This has raised concerns in Europe regarding the euro's standing in the rapidly changing crypto market.
Which Path Will the EU Choose for Stablecoins?
In light of the US passing the Genius Act, providing a clear framework for stablecoins, there is mounting pressure on the EU. The American market, heavily dollar-focused, boasts a valuation of $288 billion. With stablecoins like USDT surpassing $167 billion, the EU must accelerate the development of its digital currency.
Why is Competition Critical for the EU?
As discussions continue, there is a clear urgency among EU officials to develop a digital currency that can withstand global competition. Without decisive action, the EU risks falling behind other world players in financial innovation.
Future of the Digital Euro in International Competition Context
European institutions are set to delve into technological choices for the digital euro, with an announcement expected soon. This marks a significant phase for the EU's digital currency landscape. A top official stated, "The US’s new regulation mandates Europe to swiftly act on the digital euro."
The development of the digital euro is a critical task for the European Union in light of growing global competition and the swift advancement of financial technologies. The time to decide on the technological frameworks for the digital currency is approaching.
