Joachim Nagel, a member of the Governing Council of the European Central Bank and President of the Bundesbank, stated in a speech at the American Chamber of Commerce in Germany that the introduction of a euro-denominated stablecoin could provide individuals and businesses with low-cost cross-border payment services and address the dollarization risks posed by dollar-denominated stablecoins. Nagel pointed out that if domestic currencies are replaced by dollar-denominated stablecoins, it would be tantamount to dollarization of the relevant economies, potentially severely undermining the effectiveness of domestic monetary policy and European sovereignty. Currently, the European Central Bank is assessing the possibility of using distributed ledgers in non-central bank currencies, including tokenized deposits and euro stablecoins, and plans to launch a digital euro in 2029. Furthermore, the European Central Bank is also developing a wholesale CBDC to allow financial market participants to execute programmable transactions.