{"id":35334,"date":"2025-07-05T15:47:11","date_gmt":"2025-07-05T15:47:11","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=35334"},"modified":"2025-07-05T15:47:11","modified_gmt":"2025-07-05T15:47:11","slug":"ex-ecb-official-urges-europe-to-back-euro-stablecoins-or-risk-losing-financial-power","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=35334","title":{"rendered":"Ex-ECB Official Urges Europe to Back Euro Stablecoins or Risk Losing Financial Power"},"content":{"rendered":"<div>\n<p>Stablecoins are growing fast. Most of the $255 billion sector is currently concentrated in U.S. dollar-backed tokens, which account for $241 billion of that total, according to <a href=\"http:\/\/rwa.xyz\/\">RWA.xyz<\/a> data.<\/p>\n<p>Former European Central Bank board member and chair of Soci\u00e9t\u00e9 G\u00e9n\u00e9rale, Lorenzo Bini Smaghi, has said that the imbalance could sideline Europe in the next phase of global finance.<\/p>\n<p>Writing in the<a href=\"https:\/\/www.ft.com\/content\/8fe5e75f-1f18-40b4-b415-126647cd3d43\"> Financial Times<\/a>, Bini Smaghi noted that the European Union already has the Markets in Crypto-Assets (MiCA) law, which forces issuers to back tokens with cash and high-grade sovereign bonds.<\/p>\n<p>The bloc also runs a pilot regime for trading on distributed ledgers. Yet the euro barely features in today\u2019s stablecoin market because banks and policymakers shy away from the new technology, he wrote.<\/p>\n<p>Soci\u00e9t\u00e9 G\u00e9n\u00e9rale, it\u2019s worth adding, launched its own e<a href=\"https:\/\/www.coindesk.com\/business\/2023\/04\/20\/societe-generales-crypto-division-introduces-euro-stablecoin-on-ethereum\">uro-backed stablecoin<\/a> back in 2023. Last month, it also launched a <a href=\"https:\/\/www.coindesk.com\/business\/2025\/06\/10\/socgen-s-crypto-arm-unveils-dollar-stablecoin-on-ethereum-and-solana\">U.S. dollar-backed one.<\/a><\/p>\n<p>He says the hesitation risks European monetary sovereignty. If consumers and companies adopt dollar stablecoins for everyday payments and savings, deposits could drain from euro-area banks to US-linked platforms.<\/p>\n<p>That shift would erode the ECB\u2019s grip on money flows and blunt its ability to steer rates or calm markets, Bini Smaghi added. He argued that regulators should lean in, not block progress.<\/p>\n<p>By sponsoring euro-pegged tokens and coordinating standards, the ECB could modernize cross-border payments and help unify Europe\u2019s capital markets.<\/p>\n<p>Should Europe stay on the sidelines, \u201cit will be accepting its marginalization in the future of global finance,\u201d he wrote.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Stablecoins are growing fast. Most of the $255 billion sector is currently concentrated in U.S. dollar-backed tokens, which account for $241 billion of that total, according to RWA.xyz data. Former European Central Bank board member and chair of Soci\u00e9t\u00e9 G\u00e9n\u00e9rale, Lorenzo Bini Smaghi, has said that the imbalance could sideline Europe in the next phase [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-35334","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/35334","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=35334"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/35334\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=35334"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=35334"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=35334"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}