Bundesbank Boss Says Stablecoins Could Beat the Dollar-Is the Digital Euro Coming?

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German central bank chief sees merit in <a href="https://usdaed.com/eur-usd/">euro</a> stablecoins, but CBDC remains in focus

As an analyst, I’ve been following the comments from Joachim Nagel, president of the German central bank, and I find his perspective on euro-denominated stablecoins quite interesting. He believes they have real potential – specifically, they could make cross-border payments cheaper and faster for both businesses and everyday people. It’s a point worth considering as we look at the future of payments.

Summary

  • German central bank president Joachim Nagel said euro-denominated stablecoins can serve as a means for low-cost cross-border payments.
  • He said the Bundesbank has completed significant exploratory work on a potential wholesale CBDC.

Speaking at an event hosted by the American Chamber of Commerce in Germany in Frankfurt, Deutsche Bundesbank President Nagel mentioned that the European Union is actively developing the digital euro.

He explained that this will be the first digital payment system for retailers across Europe built entirely on European-based technology and infrastructure.

He didn’t explain how stablecoins using euros would be regulated under current EU laws, or how they would work alongside the upcoming digital euro and existing monetary policies.

Last week, Nagel warned that if stablecoins based on the US dollar become much more popular than those tied to the euro, it could seriously hinder Europe’s ability to set its own monetary policy and weaken its overall independence.

As an analyst, I’ve consistently observed Nagel’s reservations about cryptocurrencies not supported by a central bank. He’s a strong proponent of a digital euro issued by the European Central Bank, and believes it’s key to strengthening Europe’s economic stability in the years to come.

He stated that the central bank has completed initial research into creating a wholesale CBDC. This would enable banks to make payments that are automatically programmed using central bank money.

U.S. stablecoin progress stalls

Across the United States, stablecoins have gained significant traction, with the market growing quickly due to the need for reliable, dollar-based payment systems. This growth was particularly boosted by the passage of the GENIUS Act in July 2025, signed by President Donald Trump.

Progress on important crypto market rules has been delayed because lawmakers can’t agree on a key bill. This disagreement has also created divisions within the crypto and banking industries, particularly regarding how stablecoins should offer returns and rewards.

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2026-02-17 09:40