European Central Bank adviser Jürgen Schaaf has cautioned that a central bank digital currency (CBDC) will not be enough to compete with the rising use of US dollar-backed stablecoins.
In a July 28 blog post published on the ECB’s official website, Schaaf laid out several possible steps the European Union could take to strengthen its position in the crypto industry.
Among them were the promotion of well-regulated euro-pegged stablecoins, the adoption of blockchain-based technologies, and the continued rollout of the digital euro.
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Schaaf argued that public digital money should not be the only focus. He suggested that privately issued, euro-denominated stablecoins, if designed with clear rules and proper protections, might better meet real market needs. He also warned that failing to act in this area could be a costly oversight.
While public institutions often aim to remain neutral, he noted that such neutrality might backfire if Europe ignores the stablecoin market. According to him, well-managed euro-based tokens could help expand the euro’s presence globally.
He also addressed the need for more consistent rules across borders. Currently, the US and the EU are handling stablecoin oversight differently, with the GENIUS Act guiding US policy and the MiCA regulation setting the tone in Europe.
Schaaf highlighted that these different approaches may lead to fragmented oversight and missed opportunities.
Although he sees value in a CBDC, Schaaf noted that it should work together with private-sector developments and blockchain applications to protect Europe’s control over its monetary system.
Meanwhile, the Bank of England (BOE) recently reconsidered its plan to launch a CBDC. Why? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
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