ECB Warns: Europe's Monetary Sovereignty Threatened by Crypto - Cointribune

ECB advisor Jürgen Schaaf reveals that Europe's digital euro alone cannot defend against the rising dominance of dollar-backed stablecoins threatening EU monetary sovereignty.

The European Central Bank acknowledges a strategic shift is needed as dollar stablecoins like USDT and USDC dominate global crypto transactions, extending US monetary influence beyond its borders. While Europe struggles with slow adoption of euro stablecoins despite MiCA regulation, American frameworks like the GENIUS Act are rapidly exporting dollar influence through blockchain technology.

• Dollar stablecoins control majority of global crypto transactions, weakening European monetary influence
• Euro stablecoins remain marginally adopted due to lack of technological appeal and structured ecosystem
• ECB proposes broader strategy combining digital euro, regulated private stablecoins, and distributed ledger technology
• International coordination essential to prevent fragmented regulations and preserve European financial sovereignty