Lorenzo Bini Smaghi, Chairman of Société Générale and former member of the European Central Bank, urges Europe to actively adopt stablecoins to counter U.S. dominance.
Europe and U.S. Stablecoin Dominance
Lorenzo Bini Smaghi highlighted that Europe risks marginalization due to U.S.-centric stablecoin issuance. The stablecoin market in Europe plays a minor role, threatening its competitiveness in the financial ecosystem.
Regulations and Innovation in the European Financial System
Smaghi stated that despite existing EU regulations like MiCA, the adoption of stablecoins in European banks is slow. Banks perceive these digital assets as threats to traditional mechanisms, hindering innovation.
Euro's Prospects in the Stablecoin Market
Currently, Europe holds less than 1% of the stablecoin market, and even with existing initiatives, competition with the U.S. dollar remains a challenging task. Bini Smaghi calls for more flexible regulations to improve the euro's digital presence in the global crypto market.
In light of the above, Europe faces risks of marginalization in the financial sector if it does not adapt its approaches to stablecoins, thus ensuring more active participation in the global digital economy.
