Europe is stepping up its digital-money ambitions as pressure mounts on long-standing US-EU economic ties. Joachim Nagel, president of the Deutsche Bundesbank, told Frankfurt’s American Chamber of Commerce that the region must take euro-denominated stablecoins seriously — alongside a wholesale central bank digital currency (CBDC) and a consumer-facing digital euro — to bolster financial sovereignty and competitiveness. At the New Year’s Reception, Nagel argued that euro-based stablecoins could play a practical role in reducing costs for cross-border payments by businesses and individuals. “I also see merit in euro-denominated stablecoins, as they can be used for cross-border payments by individuals and firms at low cost,” he said, framing stablecoins as part of a broader push to make Europe less dependent on non-European payment rails. The timing is notable. The EU and the US remain deeply interconnected — roughly €5.4 trillion in mutual investment stock and a partnership accounting for about 30% of global trade and 44% of global GDP — but Nagel warned that the transatlantic partnership’s foundations are feeling less stable amid rising protectionism and global trade tensions. That shift is accelerating calls in Europe for strategic independence in finance and payments. Nagel also highlighted enduring structural challenges inside the single market. Despite its size, Europe’s financial system remains fragmented, which he said limits access to funding for startups and innovative firms compared with the United States. To address this, he outlined three policy priorities for strengthening European finance and payments: - Simplify regulation and reduce administrative burdens to improve the business environment. - Advance the Savings and Investments Union to unlock private capital for innovation and digital infrastructure. - Strengthen the euro’s global role by building independent European payment systems, launching a consumer digital euro, exploring wholesale CBDCs for financial institutions, and supporting euro-based stablecoins for cheaper cross-border transactions — creating, in his words, “the first pan-European retail digital payment solution, based solely on European infrastructures.” If implemented, these moves would reshape how payments and digital assets are used across Europe, potentially creating a more integrated market for stablecoins, CBDCs and other tokenized financial services — while also offering an alternative to existing global payment networks. Source: Bundesbank.de Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions. © 2026 AMBCrypto Read more AI-generated news on: undefined/news

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