Germany’s central bank president, Joachim Nagel, has voiced strong support for euro-denominated stablecoins and a digital euro. He argued these would enhance European independence in payments, especially as U.S. dollar-pegged stablecoins gain legal footing under new American legislation, which he warned could challenge European monetary sovereignty.
Joachim Nagel, president of Germany’s Deutsche Bundesbank, has endorsed the creation of a retail central bank digital currency (CBDC) and euro-pegged stablecoins. In remarks prepared for a speech, he stated EU officials were “working hard” on a retail CBDC.
Nagel said a wholesale CBDC would allow programmable payments for financial institutions. “I also see merit in euro-denominated stablecoins, as they can be used for cross-border payments by individuals and firms at low cost,” he stated.
His comments follow U.S. legislation signed by President Donald Trump establishing a framework for payment stablecoins. This law could allow U.S. dollar-pegged stablecoins to challenge any future euro-pegged versions upon its full implementation.
Last week, Nagel had mentioned significant risks from dollar-dominated stablecoins. He warned European monetary policy and sovereignty could be severely impaired if dollar coins gained a larger market share than a euro alternative.
Concurrently, U.S. lawmakers are negotiating the CLARITY Act to provide a digital asset regulatory framework. The bill’s approach to stablecoin rewards remains a point of division within the banking and crypto industries.
