- Joachim Nagel supports euro-pegged stablecoins and a retail digital euro to reduce EU reliance on U.S. dollar payment systems.
- The Bundesbank says any digital euro or stablecoin framework must meet financial stability and regulatory standards.
Germany’s central bank president has urged faster progress on euro-pegged stablecoins and a retail central bank digital currency (CBDC), arguing that such tools are necessary to reduce the European Union’s dependence on U.S. dollar-based payment systems.
Speaking at the New Year’s Reception of the American Chamber of Commerce in Frankfurt am Main, Joachim Nagel, president of the Deutsche Bundesbank, said Europe must strengthen its monetary sovereignty as digital finance expands. “If we want to remain independent in payments, we need European solutions,” he said, referring to the growing dominance of dollar-denominated stablecoins and non-European infrastructure.
Nagel pointed to ongoing work by the European Central Bank on a retail digital euro, which would allow households and businesses to hold central bank money in digital form. He described the project as an important complement to cash and existing online payment options. “A digital euro would ensure that central bank money remains accessible in the digital age,” he said.
Focus on Stablecoin Regulation and Wholesale CBDC Development
In addition to a public digital currency, Nagel expressed support for properly regulated euro-backed stablecoins issued by private firms. Such instruments, he noted, could ease cross-border transactions within the European Union and help reduce reliance on dollar-linked tokens. He stressed that any stablecoin framework must meet strict standards for financial stability, transparency, and consumer protection.
Nagel also highlighted the potential for a wholesale CBDC designed for financial institutions, particularly for improving settlement efficiency and enabling programmable payments.
His remarks reflect broader concern among European policymakers that heavy dependence on foreign currency payment systems could expose the bloc to external regulatory and geopolitical pressures. Discussions on technical design, privacy safeguards, and regulatory structures for both the digital euro and euro-pegged stablecoins remain ongoing.
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