
The European Union is facing a grave threat as USD-based stablecoins encroach upon its economic sovereignty. The rising popularity of these coins, fueled by the increasing adoption of digital payments and decentralized finance (DeFi), has sparked concerns among policymakers and financial regulators.
As the article reveals, the dominance of USDT and USDC in Europe is not expected to be easily broken. Despite the growing interest in EU-based stablecoins, the dollar’s global influence over the cryptocurrency market and e-commerce is too strong for these alternatives to gain significant traction. This has led to concerns among European financial institutions that they are being left behind in this new digital landscape.
The threat posed by USD-based stablecoins goes beyond mere economic dominance. It also has implications for the continent’s sovereignty, as the US dollar’s influence extends far beyond monetary transactions. The EU is faced with a stark choice: either adapt to these changes or risk becoming increasingly irrelevant on the global stage.
China, which has already hinted at the need for a yuan-based stablecoin, joins the chorus of concerns about the rise of USD-based stablecoins in Europe. This development has significant implications for the EU’s financial sector, particularly as it is not equipped to handle the speed and scale of these transactions.
The article concludes by emphasizing that this issue must be addressed through regulatory means, with large European companies and banks supporting the development of euro-based stablecoins.
Source: www.bitcoinbazis.hu