European Central Bank Chief Economist: The necessity of a digital euro is increasing to counter stablecoins and non EU tech giants' payment systems

According to BlockBeats, on March 21st, Philip Lane, Chief Economist of the European Central Bank (ECB), stated that stablecoins denominated in the US dollar and electronic payment systems dominated by American tech giants are gaining an increasing share in the European financial system, and Europe needs a digital euro to address this challenge. The electronic payment methods provided by large technology companies such as Apple Pay, Google Pay, and PayPal have put Europe at risk of economic pressure and external coercion. He emphasized that the digital euro will provide secure and universally accepted digital payment options within the European regulatory framework, reduce reliance on foreign payment systems, and limit the influence of stablecoins in the eurozone. Lane also pointed out that currently 99% of the stablecoin market is composed of tokens anchored to the US dollar, which may lead to the eurozone payment system gradually anchoring directly or indirectly to the US dollar rather than the euro. Like other major economies, the ECB is exploring the possibility of launching a central bank digital currency (CBDC) to address competition from stablecoins and payment systems from tech companies. Lane believes that the eurozone is composed of 20 EU member states, and the payment system is dispersed due to different traditional standards in each country. The digital euro will provide a unique opportunity to solve the problem of fragmented retail payments in the eurozone.