The race for stablecoins is heating up, and this time, it’s Europe’s turn to step into the spotlight (finally).
Nine major European banks (including ING, UniCredit, CaixaBank, Danske Bank, and more) are joining forces to launch a MiCA-compliant euro stablecoin. The rollout is scheduled for 2026, and the mission is clear: build a fast, cheap, always-on payment system that isn’t coming from Uncle Sam.
Why does Europe need its own stablecoin?
Right now, the stablecoin market is completely dominated by the US. Dollar-backed giants like Tether (USDT) and Circle’s USDC control about 99% of the $295 billion market.
That means almost all global crypto transactions, DeFi activity, and cross-border flows run through dollar rails. Euro on the other hand is practically invisible on the stablecoin map.
And while the US just passed the Genius Act, giving clear regulatory guidelines for stablecoins, the EU doesn’t want to stay dependent on Washington’s rules. A “made in Europe” stablecoin could give some power back to the Old Continent in a financial world where the dollar calls most of the shots.
What’s the plan?
The banks’ roadmap is ambitious. This isn’t just about creating another digital euro token. Their stablecoin would come with features like:
- Instant cross-border transfers → goodbye to days of waiting for money to settle.
- Programmable payments → think smart contracts for invoices, salaries, or automated supply chains.
- Upgraded logistics → better transparency for trade and supply chain management.
All of this would be wrapped in MiCA’s strict rules on reserves, transparency, and compliance. No shady collateral, no mystery audits. The banks even set up a dedicated company in the Netherlands, with the goal of being fully licensed and supervised from day one.
What about the digital euro?
The European Central Bank’s project of digital currency (CBDC) has been running late. Current estimates put its launch at 2029.
That’s four long years where Europe risks falling further behind. By contrast, the bank-led stablecoin should be ready by 2026 which, in a way, makes it a kind of “CBDC by proxy”, filling the gap until the ECB catches up.
A knight in shining armor or just another token?
The big question is whether this stablecoin will become the hero of EU sovereignty or another random token almost no one will use.
On one hand, it could give Europe more control over its digital economy, ensure payments don’t have to run through dollar-backed systems, and finally give businesses a reliable euro-based alternative.
On the other hand, adoption is never guaranteed. Stablecoins live or die by liquidity and network effects, and so far, the dollar still wears the crown.
But the timing looks good. With MiCA providing a clear legal framework, a coordinated banking effort, and a delayed official digital euro, the conditions may be right for the project to work. Let’s see what the future holds for it.
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