Bundesbank Chief Backs Euro Stablecoins to Curb Dollarization
Bundesbank chief and ECB Governing Council member Joachim Nagel said on Thursday that a wholesale central bank digital currency alongside euro‑pegged stablecoins could strengthen the euro’s role on the global stage and help curb dollarization. Nagel presented the two instruments as complementary: a wholesale CBDC for institutional liquidity and settlement, and regulated euro stablecoins for broader payment and market use.
The endorsement matters because it signals growing official support in Europe for digital‑asset solutions designed to preserve monetary sovereignty and improve cross‑border payments. Policymakers will still need robust oversight, clear issuance rules and international coordination to manage risks such as financial stability, compliance and market fragmentation, but Nagel’s comments move the discussion closer to practical adoption and regulatory design.