ECB consultant warns: Europe threatens the loss of monetary sovereignty-Euro-stabilized cryptocurrency only covers 0.15% of the $ 230-billion market

ECB consultant warns: Europe threatens the loss of monetary sovereignty-Euro-stabilized cryptocurrency only covers 0.15% of the $ 230-billion market

Risk of the loss of monetary sovereignty in Europe: A look at euro-denominated stablecoins

In the current discussion about digital currencies and stable coins, a consultant from the European Central Bank (ECB) emphasizes that Europe is in danger of losing its monetary sovereignty. This is done against the background that euro-denominated stable coins only make up 0.15 % of the total market worth $ 230 billion.

stablecoins that are bound by traditional currencies such as the euro are becoming more important in many regions. Nevertheless, the current market development shows that European stable coins in the global landscape are strongly behind. The worrying number of only 0.15 % indicates that the market for euro-denominated stable coins has hardly gained a foothold.

The warning of the ECB is underpinned by increasing relocation of financial transactions to digital currencies. If Europe fails to take a stronger position in the field of digital currencies, European markets could become more susceptible to external influences. There is a risk that other currencies, in particular the US dollar, will increasingly take control in the digital currency area.

This development raises central questions about future monetary policy and the mechanisms of money supply. The ECB may have to take strategic measures to ensure the competitiveness of the euro in the world of digital financing.