The dominance of US dollar-backed stablecoins in digital payments is being challenged by an ambitious European initiative. Spearheaded by a consortium of ten leading banks, including BNP Paribas, ING, and UniCredit, Europe is set to introduce a euro-backed stablecoin as a secure, regulated alternative. This move aims to ensure the continent’s financial independence by leveraging blockchain technology.
What is Driving the Digital Euro Initiative?
With the rising popularity of blockchain and stablecoins, European financial institutions are pivoting to reclaim autonomy and reduce reliance on the dollar-backed stablecoins dominating the global market. The project will anchor its foundation in the EU’s strict MiCAR (Markets in Crypto-Assets Regulation), reassuring users in terms of regulatory oversight and compliance.
At the forefront of this effort is Qivalis, a newly founded entity based in Amsterdam. Led by influential figures such as Jan-Oliver Sell, former Coinbase Germany head, and Howard Davies, the previous NatWest chair, Qivalis exemplifies trust and institutional robustness. Its mission includes not just releasing a stablecoin but ensuring it becomes a cornerstone of Europe’s digital payments ecosystem.
How the Stablecoin Will Work
Operating “on-chain,” the euro-backed stablecoin will allow transaction reliability, security, and speed. BNP Paribas, one of the consortium leaders, focuses on real-world use cases with corporate clients to ensure seamless integration into existing financial frameworks. Qivalis aims to launch this groundbreaking initiative by the second half of 2026, though it first needs to scale its workforce and acquire crucial approvals like the Electronic Money Institution (EMI) license from the Dutch Central Bank.
Challenges from Global Counterforces
The U.S. dollar remains a dominant force within the stablecoin market. Projections suggest its stablecoin demand may hit $3 trillion by 2030, but this growth is not without controversy. Over-reliance on the dollar often triggers political and economic backlash in regions seeking monetary independence.
Additionally, China views stablecoins as a threat to currency sovereignty, further escalating regulatory crackdowns domestically. Through the Qivalis-led initiative, Europe seeks to establish itself as a leader while bypassing the challenges posed by dollarization and China’s restrictive policies.
This push demonstrates Europe’s intent not only to lead in blockchain innovation but also to build a sustainable solution for a digital euro economy.
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