The widespread use of staboins denominated in US dollars in the European Union (EU) for payments or the regulations could affect the control of the European Central Bank on monetary conditions, said a BCE advisor.
If the stable stables supported by the United States, the digital assets that are supported by the dollar, gain ground for use in the EU, the effect could be similar to the impact of the US dollar on development, said Jürgen Schaaf in a blog article on Monday. In particular, they made more difficult for decision -makers to set interest rates and control the money supply.
“This encroachment, although progressive, could echo the models observed in dollarized economies, especially if users are looking for perceived safety or yield advantages that are not available in the instruments labeled in euros,” said Schaaf.
The largest stablecoins are the USDT of Tether and USDC of Circle, which together represent more than 80% of the total stable market capitalization, which has climbed to 271.8 billion dollars following the signing of an American law on the United States reserve on July 19.
Schaaf described American law as similar to EU market regulations in cryptographic assets (Mica), but more indulgent in certain regions. The implementation of the law could lead to an increase in the Stablescoin market to 2 dollars of dollars by the end of 2028, said in April.
“The stables of the US dollar can cement their early domination unless alternatives from credible Euro do not materialize,” wrote Schaaf. Such domination “would provide strategic and economic advantages in the United States, allowing it to finance its debt at a lower cost while exercising a global influence”.
In cross -border transactions, the stablecoins called dollars could compete directly with the Euro -based instruments, said Schaaf. They could also be strongly invoked for token regulations because this process requires a digital representation of cash to settle transactions, he added.
To mitigate the threat, Schaaf suggested that more support should be offered for stablecoins supported by Euro. He also suggested that the digital euro – a digital currency that would be issued by the ECB – would have a role to play.
“The digital euro promises to be a solid line of defense of European monetary sovereignty,” said Schaaf.
The ECB is not the only regulator worrying by the domination of the stablecoins which are fixed to the greenback. China is also considering the need for a regulated Stablecoin of Yuan (CNH), said the president of the Animoca group Evan Ayuang, in an interview with Coindesk last week.
