Written by: Long Yue, Wall Street Insights

In response to the rapid advancement of stablecoin legislation in the United States, the European Union is reassessing and accelerating its digital euro plan to defend the competitiveness of the euro and Europe's financial sovereignty.

According to a report by the Financial Times on August 22, participants in the discussions revealed that the "Genius Act," a bill passed by the U.S. Congress last month aimed at regulating the $288 billion stablecoin market, has caused a stir in Brussels and Frankfurt. This legislation has prompted EU officials to feel a sense of urgency, believing that action must be accelerated.

EU officials have recently been "reconsidering the digital euro plan." Insiders stated that the swift passage of this U.S. law "has shocked many," adding, "They are saying, 'Let’s speed up, let’s work hard.'"

At the same time, this sense of urgency is driving a significant shift in technological direction. EU officials are now more seriously considering running the digital euro on public blockchains like Ethereum or Solana. This move sharply contrasts with previous expectations that leaned towards using private blockchains due to privacy concerns.

Concerns Over Dollar Dominance

The legislative progress in the U.S. regarding stablecoins has intensified long-standing worries among European policymakers about the dominance of the dollar. Currently, the vast majority of the stablecoin market consists of dollar-denominated tokens operated by cryptocurrency companies like Circle and Tether, while traditional U.S. financial giants like Citigroup and JPMorgan are also considering issuing their own stablecoins.

Piero Cipollone, a member of the Executive Board of the European Central Bank, warned in April that the U.S. government's promotion of dollar-backed stablecoins "has raised concerns about European financial stability and strategic autonomy." He pointed out that this could lead to "the transfer of euro deposits to the U.S., further strengthening the dollar's role in cross-border payments."

In contrast, the market for euro-denominated stablecoins remains very small, with the largest euro stablecoin issued by Circle having a market capitalization of only $225 million, which pales in comparison to the massive dollar stablecoin market. A participant in the discussions stated that the U.S. bill "is fostering a dialogue that did not exist before," pushing the EU to take more decisive action.

Significant Shift in Technological Path

To address the challenges, a fundamental strategic adjustment regarding the technological foundation of the digital euro is being discussed within the EU. Previously, it was widely expected that the digital euro would operate on a privatized network controlled by the central bank.

However, insiders have revealed that public blockchain solutions are being "taken more seriously." Running the digital euro on a public blockchain could theoretically allow it to be transacted anywhere, greatly facilitating its circulation and use. But this solution also brings new challenges, primarily that the transparency of public ledgers could raise user privacy concerns, which has been the core reason for the cautious stance taken by officials previously.

Now, in order to compete with the U.S.-led, market-based digital asset ecosystem, the EU seems willing to reassess the trade-offs between openness and privacy.

Global Central Bank Digital Currency Race

The EU's latest moves are another example of the accelerating global race for central bank digital currencies (CBDCs). The European Central Bank has been researching the digital euro for several years, and its supporters believe that as cash usage declines, a central bank-backed digital currency will provide the public with a secure payment method while also helping to enhance the euro's international standing.

In this race, China's digital yuan is considered to be at the forefront, while the UK is also considering creating a digital pound. For the EU, having the European Central Bank personally issue the digital euro would be a decisive step in solidifying the region's commitment to digital assets, as Piero Cipollone stated: "Europe cannot overly rely on foreign payment solutions."

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。