Bundesbank President: Euro stablecoins and CBDCs help enhance the independence of the European payment system

Bundesbank President Joachim Nagel supports the introduction of a euro-denominated central bank digital currency (CBDC) and a euro stablecoin for payments. Nagel pointed out that EU officials are working to advance the introduction of a retail CBDC, and that a euro stablecoin would help make Europe more independent in its payment systems and solutions, and reduce cross-border payment costs for individuals and businesses. Nagel believes that a CBDC would allow financial institutions to use central bank currency for programmable payments. However, Nagel warned that if dollar-denominated stablecoins gain a significantly larger market share than euro-denominated stablecoins, domestic monetary policy could be severely damaged, and European sovereignty could be weakened. Currently, the US has signed legislation establishing a framework for payment-based stablecoins, and the US Senate is discussing the CLARITY Act. (Cointelegraph)