German Central Bank Governor: Euro Stablecoin Can Optimize Cross-Border Payments and Address Dollarization Risk

BlockBeats News, February 19th, Joachim Nagel, President of the Deutsche Bundesbank, stated in a speech at the German American Chamber of Commerce that the introduction of a Euro-denominated stablecoin could provide individuals and businesses with low-cost cross-border payment services and address the dollarization risk posed by USD stablecoins. Joachim Nagel pointed out that if domestic currency is replaced by a USD stablecoin, it would be equivalent to dollarization of the relevant economic area, potentially severely undermining the effectiveness of domestic monetary policy and European sovereignty. Currently, the European Central Bank is evaluating the possibility of using distributed ledger technology in non-central bank money, including tokenized deposits and a Euro stablecoin, and plans to launch a digital Euro in 2029.