"Europe Strikes Back: Euro Stablecoin Takes Aim at US Financial Supremacy"

European Banks Launch Euro Stablecoin to Counter US Dominance Nine major European banks have announced plans to launch a euro-backed stablecoin in 2026, aiming to challenge the dominance of US-based dollar-pegged tokens in the digital token market. According to figures released by the Bank of Italy last week, global stablecoin issuance stands at nearly $300 billion, with euro-denominated stablecoins totaling just $620 million. The initiative, which will be housed in a Netherlands-based company, is expected to provide a European alternative for quick and low-cost payments and settlements. "The initiative will provide a real European alternative to the U.S.-dominated stablecoin market, contributing to Europe's strategic autonomy in payments," said the banks in a statement. The move comes as the European Central Bank (ECB) has expressed skepticism over stablecoins, citing potential risks to monetary policy and financial stability. However, the banks involved in the initiative believe that their euro-backed stablecoin will offer a more secure and reliable alternative to existing dollar-pegged tokens. According to Reuters, the banks' decision to launch a euro-backed stablecoin is driven by the desire to reduce dependence on US-dominated digital token markets. "The new euro-denominated stablecoin seeks to capture a larger share of the market currently dominated by dollar-pegged tokens," said Reuters in its report. The ECB's skepticism over stablecoins has been a major concern for regulators and policymakers worldwide. However, the banks involved in the initiative believe that their euro-backed stablecoin will meet all regulatory requirements and provide a secure platform for transactions. While the launch of the euro-backed stablecoin is still two years away, the move is seen as a significant step towards reducing Europe's reliance on US-dominated digital token markets. As one expert noted, "The introduction of a euro-backed stablecoin will not only provide a European alternative but also promote financial stability and security in the region." Background information suggests that the launch of the euro-backed stablecoin has been in the works for several years. The banks involved in the initiative have been working closely with regulatory bodies to ensure compliance with all relevant laws and regulations. The current status of the project is that it is expected to be launched in 2026, pending regulatory approval. Once launched, the euro-backed stablecoin will provide a secure and reliable platform for quick and low-cost payments and settlements, challenging the dominance of US-based dollar-pegged tokens in the digital token market. In conclusion, the launch of the euro-backed stablecoin by nine major European banks marks a significant step towards reducing Europe's reliance on US-dominated digital token markets. While regulatory hurdles remain, the initiative is seen as a positive development for financial stability and security in the region. This story was compiled from reports by Slashdot and Slashdot.