Jurgen Schaff, an executive at the European Central Bank (ECB), has presented three important proposals to strengthen the global advancement of stubcoin, particularly the role of the euro in those supported by the US dollar.
In your report, Schaaf warns The rise of a stable currency is giving new directions to international financesand could risk both European financial stability and its financial sovereignty. However, he argues that a proper strategy could strengthen the euro from this process.
The document begins by pointing out that stubcoins, which are valued for their international payment efficiency, have stopped being a niche phenomenon. The expansion is that being led by tokens, which are almost entirely supported by dollars, poses a serious threat to the euro.
Specialists point that out Over 99% of the total capitalization of the Stablecoins market is dominated by the dollar-based version (USD).Meanwhile, only a few stable currencies are fixed in European Union currencies, with under 350 million euros in circulation.
The Stablecoins market is currently capitalised to over USD 270 million, and is dominated by two assets that are primarily fixed at the value of the dollar: Tether (USDT) Tether (USDC) and Circle USDCoin (USDC).
Schaaf says the situation could limit the ECB’s ability to influence financial conditions if the idiots called the dollar are being adopted on a large scale in the eurozone.
Thus, executives believe that possible digital dollarization will fund Europe, weaken monetary policy and increase the bloc’s geopolitical dependence on the US. The government has already publicly stated its intention to promote the global use of the dollar on digital platforms.
Faced with this scenario, he proposes three specific actions:
The first is to promote a stub coin called the euro under advanced regulatory standards. While the ECB maintains a neutral attitude about these devices, Schaaf admits that underestimating its potential is a strategic error.
Therefore, with strict standards of support, security and transparency, the Euro stubcoin ensures that the Euro stubcoin covers the legitimate needs of the market and at the same time strengthens the international role of European currency.
The second is moving forward with the digital euro. The report also highlights that the central bank’s digital currency (CBDC) is the fundamental pillar of the ECB strategy and the fundamental pillar for strengthening eurozone sovereignty, offering options for daily trading, particularly at sales points.
The digital euro is scheduled to launch in October, but the initiative has created concerns about possible risks to individual freedoms. Critics warn that if it works on a fully trackable and centralized network, the currency can be converted into unprecedented monitoring and control tools.
Specifically, in a cashless system, we are concerned that governments are endangering basic rights by limiting costs or freezing accounts for political or social reasons.
Finally, The third proposed measure is to adopt a distributed registration technology (DLT) in wholesale financial markets. This is especially true of crosses that face high costs and delays.
Schaaf believes, for example, DLT can directly liquidate tokenized financial assets with money from the central bank on shared platform OA via custom interfaces.
In addition to these three options, executives are calling for a stronger global adjustment in stubcoin regulations. The warning is that the lack of a common framework could increase the risk of instability, promote regulatory arbitration, and consolidate the dollar territory of the digital sector. In this context, it emphasizes that the European comparative advantage lies in its focus on its robust institutional structure and clear rules.