Euro Stablecoins are 0.15% of the market. This is how Europe is updated

The following is an invited publication and opinion of Eneko Knörr, CEO and Stabolut co -founder.

Months ago, in an opinion article for cryptoslate, I warned that EU’s bad cryptographic regulation, mica, would achieve the opposite of its objectives. I argued that I would strangle the innovation of the euro while consolidating the domain of the US dollar for a new generation.

At that time, some thought this was alarmist. Today, with a gloomy validation, they are echoing the same concerns from the European Central Bank itself. In a recent blog post, also highlighted by the Financial Times, the ECB Jürgen Schaaf advisor described the status market status called by the euro as a “lousy” and warned that Europe runs the risk of being “vaporized” by dollar -based competitors.

This warning comes at a critical moment. In the traditional global economy, the coins that are not USD are the soul of trade. They represent 73% of global GDP, 53% of SWIFT transactions and 42% of the Central Bank reserves. However, in the flourishing digital economy, these same currencies are almost invisible. The second most important currency in the world, the euro, has been reduced to a digital rounding error.

For the numbers: a digital abyss

The data reveal a surprising disconnection. While the established ones called privately, called in dollars, are a market capitalization that is close to $ 300 billion, their counterparts called in Euro struggle to reach $ 450 million, according to Coingcko data. That is a market share of only 0.15%.

This is not a gap; It is an abyss. It means that for each value of € 1 transacted into a block chain, there are almost € 700 in US dollars. This dollarization of the digital world has a deep strategic risk for monetary sovereignty and economic competitiveness.

Mica Billion-Euro Handbrake

The historical markets of the EU in the regulation of cryptographic assets (Mica) were destined to create clarity, but in their ambition to control the risk, a cage has inadvertently built. While its framework for electronic money tokens (EMT) provides a path to regulation, it contains a poisonous pill for any established euro with global ambitions.

The largest larger limitation is the limit of 200 million euros in daily transactions for any EMT considered “significant”, as detailed in the official Mica text. This is not an accident or simple supervision; It is a characteristic designed to ensure that no private euro can succeed.

For the context, the main dollar stable, Tether (USDT), regularly processes more than $ 50 billion in daily volume. A limit of 200 million euros is not a security measure; It is a statement of non -ambition that makes it mathematically impossible for one euro to work at the scale required for international trade or decentralized finances.

Motivation seems clear: policy formulators are intentionally sabotheing the private sector to clear the field for their own project: the digital euro.

The digital euro: a threat to citizen privacy?

By quelling private innovation, the EU is doing all its bets in a digital currency of the central bank controlled by the State (CBDC). This is not only a slow and centralized response to a decentralized market of rapid movement, but also raises a fundamental threat to the privacy of European citizens.

Physical cash offers anonymity. A transaction with a € 5 note is private, equal to equal and does not leave a trace of data. A CBDC is the opposite. It would move all transactions to a centralized older book, creating a granular surveillance system. It gives the State the potential power to monitor, track and even control how each citizen uses their own money. Building the future of the euro on this basis means exchanging the freedom of the wallet for a transparent digital digital bank, compensation that most citizens reject rightly.

The global breed that Europe is ignoring

While Brussels focuses on building their walled garden, other important economic powers have recognized the strategic importance of the stable issued in private. They see them not as a threat but as a vital tool to project monetary influence on the digital age.

According to reports, China is exploring the role that a stablcoin backed by CNY could play to internationalize Yuan. In Japan, regulators have already approved a Stablcoin historical bill, creating clear paths for the issuance of Stablecoins backed by yen. These nations understand that the currency war will win by empowering private innovation, not centralizing control. The current path of Europe makes it a spectator in a race that should be leading.

A Play Book for the euro

If the euro is responsible, Brussels must execute a radical policy in U-Turn. The objective should not be to contain stablcoins, but to make the EU the main global center to broadcast them. This requires a clear eye strategy that recognizes private innovation will always exceed centralized solutions.

Here is a play book of how Europe can win:

1. UNCAP THE FUTURE: completely eliminate the transaction limit of 200 million euros. The market, not the regulators, must determine the scale of a successful project. Let Europa Stablecoins grow ad infinitum and compete in a global scenario without artificial roofs.
2. Quick track licenses: Establish a fast -walled fast -class authorization process for qualified EMT emitters to reduce marketing time and promote a vibrant and competitive ecosystem.
3. Follow the US model.: CANCEL EL CBDC: United States has obtained its advantage by prioritizing regulatory clarity for private emitters while its own retail plans of CBDC is effectively applied. Europe must do the same. Formally cancel the Euro Digital Project, recognizes the fundamental privacy risks that it raises and recognizes that the best unique strategy to increase the international influence of the euro is to fully support a Stablecoin market completely issued.

The election is marked: Europe can continue along its path of self -imposed digital irrelevance, or can free its innovators to build the future of finance. At this time, that future is almost completely built with US digital dollars, and time is being exhausted to change that.