The Deutsche Bundesbank, also known as the German Central Bank, sent a strong message regarding the widespread adoption of digital euros and euro-based stablecoins. The institution's latest statement aims to increase the resilience of the European financial system and strengthen the continent's monetary sovereignty by promoting the more effective use of digital assets. Following this announcement, analysts predicted that the global stablecoin market could reach $500 billion by 2028. The share of euro-based stablecoins, in particular, is expected to increase significantly in the coming years.
ECB warns about dollar
European Central Bank officials, meanwhile, drew attention to the increasing global dominance of dollar-pegged stablecoins. This situation could weaken the European Central Bank's monetary policy transmission mechanism. According to officials, creating a strong central bank digital currency (CBDC) structure in the euro zone will both increase the resilience of the financial system and strengthen the effectiveness of monetary policy.
German Finance Minister Lars Klingbeil also stated in Brussels that the European Union is at a critical juncture. Emphasizing the need to transcend national interests, Klingbeil called for accelerating steps to strengthen Europe's economic sovereignty.
Nagel: Euro stablecoins are game-changers
Bundesbank President Joachim Nagel, in a speech in Frankfurt, stated that a euro-linked CBDC and regulated euro stablecoins are of strategic importance for the financial sector.
According to Nagel, the wholesale CBDC model, in particular, will offer financial institutions the opportunity to make programmable payments via central bank money. This structure can reduce costs in cross-border transactions and increase competitiveness in fintech infrastructures.
Analysts note that this approach is part of Europe's effort to reduce its dependence on dollar-based assets. While it is commented that more positive policies towards crypto assets in the US could increase the risk of "digital dollarization," euro-based stablecoin and tokenization projects are thought to be a counterweight to this threat.
S&P's Trillion-Euro Forecast
Credit rating agency S&P Global Ratings has also shared striking projections regarding the euro-pegged stablecoin market. According to the institution, the market size, which was approximately €650 million at the end of last year, could reach €1.1 trillion by 2030 in the most optimistic scenario.
In the main scenario, the market is expected to reach €570 billion. This figure corresponds to approximately 2.2% of total bank deposits in the euro zone. The estimates also include nearly €500 billion in tokenized investment products and approximately €100 billion in tokenized payment volume.
In comparison, it is seen that the market value of US dollar-pegged stablecoins will reach $310 billion by the end of 2025. Although Europe's share in this area is still limited, the picture could change rapidly as institutional support and regulatory clarity increase. In conclusion, the message from the Bundesbank and the ECB is clear: Europe, which wants to have a say in digital payment infrastructure, must rapidly implement solutions based on its own currency.
