The European Central Bank (ECB) shows that the rise of cryptocurrencies and the new forms of digital payments are direct challenges to the euro’s international role.
The annual report on the global use of European currency is The agency warns of the risks Cryptoactive and other digital innovations assume for financial stability Traditional The positioning of the euro compared to other financial signs.
The document analyses the evolution of the euro as a reserved asset and analyses it as a payment instrument outside the country that uses it as official money, highlighting that participation in key international use indicators remains at around 19% in 2024.
However, among the threats identified by the ECB are efforts by the specific countries to promote cryptocurrencies, particularly as alternatives to traditional financial systems.
One of the main concerns emphasized is Advances in the US-stimulated initiative to enhance the global use of cryptographic actionmay gradually move to traditional Fiatcoin.
The ECB warns that these developments, driven by the increased adoption of Bitcoin (BTC) and the adoption of dollar-fixed stubcoins, could create a change in international capital flows and impact financial stability around the world.
«A new challenge the euro must face to strengthen its international role has been revealed. The new US administration has taken an initiative to support the global use of cryptocurrencies. These include creating a “Bitcoin Strategic Reserve” using $170 million in BTC seized by the US Treasury in the judicial process. Additionally, some initiatives are seeking to promote innovation and promote dollar-related emissions and use, representing approximately 99% of standard market capitalization at the end of 2024.
Excerpt from a report issued by the European Central Bank.
Banks recognize the increasing financial competition between the global economy, along with technical struggles for managing the financial system in the future.
The stubcoin, backed by American currency, is already a public debt of $150 million, and it emphasizes its already has a significant presence as it is a figure comparable to the reserves of countries such as Germany and Mexico.
So, The ECB highlights the need to accelerate digital euro plansCBDC as a means to strengthen European economic sovereignty and maintain the strength of its currency. Additionally, the agency is urging lawmakers to eliminate internal barriers that hinder continental financial market integration.
The agency emphasizes that the euro is the second most used international currency, but its position is facing increasing pressure.
Among the aforementioned factors are the record accumulation of gold by central banks, the boom in alternative payment systems such as the BRICS CLEAR and the Chinese CIPS system, and the use of local currency in international agreements.
The digital euro is scheduled for release in October 2025, and the project raised fierce debate on its implications. The authorities present it as a step towards a more modern and efficient system; Various voices warn of the risks that empower the nation unprecedentedlyespecially in terms of control over citizens, as reported by Cryptootics.
Critics such as Marc Vidal and Captain Bitcoin have warned that the entire digital euro could erode individual freedoms. The latter compares to the system currently governed in China.
Many people look at the state’s surveillance tools in the digital currency of the Central Bank (CBDC), but voices like Bundesbank’s president Joachim Nagel argue that the project’s purpose is a solution to maintaining the Fíat Money system.