European Central Bank (ECB) adviser Jürgen Schaaf has outlined a series of strategic recommendations for the European Union in response to the growing popularity of dollar-pegged stablecoins.
Strategic Measures for the EU
Schaaf called for increased support for euro-denominated stablecoins and suggested the use of distributed ledger technologies (DLT) in payment infrastructure. He emphasized the need for global coordination on stablecoin regulation, highlighting the disparities between U.S. and European legislation.
Role of Euro-based Stablecoins
Schaaf suggested that well-designed euro-stablecoins could fulfill legitimate market needs and contribute to reinforcing the international role of the euro. He argued that stablecoins might be a more viable response to the challenges posed by dollar-pegged alternatives than the digital euro.
Future of Digital Euro
While discussing the digital euro, Schaaf emphasized that it is just one part of a broader digital payments strategy. He believes that the public CBDC and private innovations could complement each other in safeguarding Europe's financial sovereignty.
Schaaf’s statements indicate that Europe is considering a multi-faceted approach to the stablecoin challenge, reflecting growing concerns regarding transnational digital financial technologies.
