{"id":30339,"date":"2026-06-01T09:58:57","date_gmt":"2026-06-01T09:58:57","guid":{"rendered":"https:\/\/bitunikey.com\/news\/ecbs-schnabel-says-digital-euro-needed-as-stablecoin-market-nears-300b\/"},"modified":"2026-06-01T09:59:08","modified_gmt":"2026-06-01T09:59:08","slug":"ecbs-schnabel-says-digital-euro-needed-as-stablecoin-market-nears-300b","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/ecbs-schnabel-says-digital-euro-needed-as-stablecoin-market-nears-300b\/","title":{"rendered":"ECB\u2019s Schnabel says digital euro needed as stablecoin market nears $300B"},"content":{"rendered":"<p><\/p>\n<div class=\"post-detail__content blocks\">\n<p class=\"is-style-lead\">Stablecoins nearing a $300 billion market value have prompted fresh warnings from the European Central Bank, whose officials say a digital euro is needed to protect financial stability and maintain the role of central bank money in the payments system.<\/p>\n<div id=\"cn-block-summary-block_92767c82c2434ae0535c724e947f843b\" class=\"cn-block-summary\">\n<div class=\"cn-block-summary__nav tabs\">\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/div>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>ECB board member Isabel Schnabel warned that stablecoins could create financial stability risks as the sector approaches a $300 billion market value.<\/li>\n<li>Schnabel said dollar-backed stablecoins could strengthen the U.S. dollar\u2019s global position, while euro-denominated stablecoins remain a small part of the market.<\/li>\n<li>The ECB continues to back a digital euro project, with a pilot expected in 2027 and potential issuance readiness targeted for 2029.<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<p>According to Isabel Schnabel, a member of the European Central Bank\u2019s Executive Board, the rapid growth of stablecoins has introduced risks that could affect financial stability, monetary policy, and the international monetary system.<\/p>\n<p>Speaking at the 2026 Bank of Korea International Conference in Seoul on Monday, Schnabel said stablecoins remain vulnerable to runs if users lose confidence in the assets backing them.<\/p>\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\">\n<div class=\"wp-block-embed__wrapper\">\n<div class=\"rll-youtube-player\" data-src=\"https:\/\/www.youtube.com\/embed\/C06tY1MAkNo\" data-id=\"C06tY1MAkNo\" data-query=\"feature=oembed\" data-alt=\"[ENG] 2026 Bank of Korea International Conference : Opening Session\"><\/div>\n<p><noscript><iframe loading=\"lazy\" title=\"[ENG] 2026 Bank of Korea International Conference : Opening Session\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/C06tY1MAkNo?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/noscript>\n<\/div>\n<\/figure>\n<p>Schnabel told conference participants that stablecoins face liquidity mismatches and can become unstable when trust in reserve assets deteriorates. She also warned that the sector\u2019s heavy reliance on dollar-denominated tokens could reinforce the U.S. dollar\u2019s position in global finance.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThe growing use of stablecoins may further cement the international dominance of the U.S. dollar. Today, virtually all stablecoins in circulation are denominated in dollars, with other currencies playing a negligible role,\u201d \u2013 Isabel Schnabel.<\/p>\n<\/blockquote>\n<p>ECB figures cited by Schnabel show that the stablecoin market has grown to almost $300 billion, even though expansion has slowed compared with earlier periods. She said Tether\u2019s USDT and Circle\u2019s USDC together account for about 90% of the market.<\/p>\n<h2 class=\"wp-block-heading\">ECB points to digital euro as policy response<\/h2>\n<p>Rather than opposing technological innovation, Schnabel said central banks should establish safeguards that preserve trust in money and maintain effective monetary control.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThe appropriate response is therefore not to resist innovation but to ensure that it develops within a framework that preserves stability, monetary control and trust in the currency.\u201d<\/p>\n<\/blockquote>\n<p>Within Europe, Schnabel argued that a digital euro would help preserve public access to central bank money while reducing dependence on foreign payment providers. She said a retail central bank digital currency could serve as a pan-European payment option with legal tender status and help address fragmentation across the region\u2019s payments market.<\/p>\n<p>Her comments build on the ECB\u2019s ongoing digital euro project. Back in March, ECB Executive Board member Piero Cipollone told European lawmakers that the central bank expects to publish digital euro technical standards in 2026, allowing banks, payment firms, and merchants to prepare their systems before any final issuance decision.<\/p>\n<p>Under agreements announced in April, the ECB partnered with the European Card Payment Cooperation, nexo standards, and the Berlin Group to reuse existing European payment standards for digital euro transactions. The ECB said the approach would reduce implementation costs and allow payment providers to integrate digital euro services through existing infrastructure rather than building entirely new systems.<\/p>\n<p>According to Cipollone, the digital euro would complement cash and bank deposits rather than replace them and argued that maintaining a European payment infrastructure could help retain payment revenues within the region and reduce reliance on international payment networks.<\/p>\n<h2 class=\"wp-block-heading\"><strong>Launch readiness targeted for 2029<\/strong><\/h2>\n<p>As work on the project continues, the ECB\u2019s website states that the digital euro is currently in a technical preparation phase. The central bank expects digital euro legislation to be adopted in 2026, followed by a 12-month pilot beginning in the second half of 2027 that will test person-to-person and point-of-sale payments.<\/p>\n<p>Provided the legal framework is approved, the ECB has said it wants to be technically ready for a potential issuance by 2029.<\/p>\n<p>Elsewhere, Schnabel contrasted Europe\u2019s approach with that of the United States. Her remarks came just days after U.S. Treasury Secretary Scott Bessent reiterated that the current administration does not support the creation of a U.S. central bank digital currency while encouraging Congress to advance the Clarity Act.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Stablecoins nearing a $300 billion market value have prompted fresh warnings from the European Central Bank, whose officials say a digital euro is needed to protect financial stability and maintain&hellip;<\/p>\n","protected":false},"author":1,"featured_media":30340,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-30339","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/30339","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=30339"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/30339\/revisions"}],"predecessor-version":[{"id":30341,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/30339\/revisions\/30341"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/30340"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=30339"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=30339"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=30339"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}