The generalized use of the stable called in US dollars in the European Union (EU) for payments or liquidation could damage control of the European Central Bank on monetary conditions, said an ECB advisor.
If Stablecoins backed by the United States, digital assets that are backed by the dollar, earn traction for use in the EU, the effect could be similar to the impact of the US dollar on developing economies, Jürgen Schaaf said in a blog post on Monday. In particular, they have made it difficult for political leaders to establish interest rates and control the money supply.
“This invasion, although gradual, could echo the patterns observed in dollarized economies, especially if users seek perceived security or performance advantages that are not available in instruments called euros,” said Schaaf.
The largest stablecoins are the USDC of the USDT of Tether and the USDC of Circle, which together represent more than 80% of the total market capitalization of Stablecoin, which rose to $ 271.8 billion after the signing of a US Stablecoin Law. UU. On July 19.
Schaaf described the United States law as similar to the regulation of EU markets in cryptographic (MICA) assets, but more indulgent in some areas. The implementation of the law could result in the Stablecoin market to increase to $ 2 billion by the end of 2028, said Investment Bank Standard Chartered in April.
“American dollar stable can consolidate their early domain unless the credible euro alternatives materialize,” Schaaf wrote. Such domain “would provide the United States with strategic and economic advantages, which will allow you to finance your debt more economically while exercising global influence.”
In cross -border transactions, the stablecoins called in dollars could compete directly with the instruments based on euros, said Schaaf. They could also trust greatly for tokenized settlements, since this process requires digital cash representation to liquidate transactions, he added.
To mitigate the threat, Schaaf suggested that more support should be offered for the stable backed by the euro. He also suggested that the digital euro, a digital currency that would be issued by the ECB, would have a role to play.
“The digital euro promises to be a robust line of defense of European monetary sovereignty,” Schaaf said.
The ECB is not the only regulator concerned with the domain of the stables that are linked to the green cover. China is also considering the need for a Yuan Offshore regulated stablin (CNH), said the president of the Animoca group, Evan Ayuang, in an interview with Coindesk last week.
