Does Europe need Euro-pegged stablecoins? Bundesbank chief says…

ambcryptoPublished on 2026-02-17Last updated on 2026-02-17

Abstract

Europe is increasingly focused on developing euro-denominated stablecoins, a wholesale CBDC, and a digital euro to enhance its financial sovereignty, according to Bundesbank President Joachim Nagel. He emphasized that euro-pegged stablecoins could facilitate low-cost cross-border payments for individuals and businesses. This shift comes as Europe seeks strategic independence amid a changing transatlantic partnership, despite strong economic ties with the U.S. including €5.4 trillion in mutual investments and significant contributions to global trade and GDP.

Europe is playing catch-up in the global money race. According to Joachim Nagel, president of the Deutsche Bundesbank, the region is now looking more seriously at euro-denominated stablecoins!

Digital money for financial independence

Nagel recently said that Europe should support euro-denominated stablecoins, a wholesale central bank digital currency (CBDC), and a digital euro to strengthen the region’s financial sovereignty.

At the New Year’s Reception of the American Chamber of Commerce in Frankfurt, he said,

“I also see merit in euro-denominated stablecoins, as they can be used for cross-border payments by individuals and firms at low cost.”

The European Union and the United States are connected economically, with around €5.4 trillion in mutual investment stock and a partnership that accounts for roughly 30% of global trade and 44% of global GDP.

But now, Europe is considering strategic independence.

“These days, however, the previously solid ground of the transatlantic partnership values seems shaky.”

Challenges to growth

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