European Banks Unite to Launch a New Euro Stablecoin

Post by : Saif Nasser

A major group of European banks has taken a bold step toward shaping the future of digital payments in Europe. Ten well-known banks from across the continent, including financial giants ING and UniCredit, have joined together to create a new company in Amsterdam. Their aim is to launch a euro-pegged stablecoin, a digital currency designed to keep a steady value equal to the euro.

This move shows Europe’s growing desire to compete with the United States, which currently dominates much of the global digital payments industry. European leaders and financial institutions have long expressed concern that the region relies too heavily on U.S. technology companies and payment systems. By developing their own stablecoin, the banks hope to offer Europeans a safe, reliable, and home-grown digital payment option.

The leadership team for this new venture brings significant experience. Jan-Oliver Sell, who formerly worked at Coinbase in Germany, will serve as CEO. His background in digital assets and global exchanges gives the project a strong foundation. Floris Lugt, the digital asset lead at ING, will take on the role of CFO, adding deep technical and financial expertise. Howard Davies, a respected figure and former chair of NatWest, will serve as chair of the new company.

The stablecoin will be backed 1:1 with the euro, meaning that each digital coin will have an equal value to the traditional currency. This is meant to build trust among consumers and businesses, offering them a predictable digital payment tool without the price swings common in cryptocurrencies.

The banks believe this stablecoin can be used for everyday purposes, such as shopping, online transactions, and cross-border payments. It may also support faster and cheaper transfers between individuals and companies across Europe. This would be especially helpful in a world where digital commerce continues to grow, and customers expect smooth, instant payments.

Another key goal is strengthening Europe’s financial independence. By creating a European stablecoin, the banks aim to give the region more control over its digital payment infrastructure. Today, most widely used digital payment tools and crypto-related products are built and managed by U.S. companies. European leaders see this as a strategic risk, especially in a time of increasing global competition.

Still, the announcement represents only the first step. The new stablecoin must meet strict European Union rules, including the MiCA (Markets in Crypto-Assets) regulations. These rules require companies to ensure strong consumer protection, clear financial reporting, and safe asset backing. While the banks believe they can meet these standards, the approval process could take time.

For now, the formation of this new company marks an important milestone for Europe’s digital future. It shows that the region is not only reacting to global changes but is also willing to innovate and compete. If successful, the euro stablecoin could become a major tool for modern payments across the continent.

The project also signals that traditional banks are no longer standing on the sidelines of digital finance. Instead, they are stepping into the field with their own solutions, aiming to reshape how people and businesses make payments in the years ahead.

The coming months will show how quickly the new company can move from planning to launch. But one thing is clear: Europe is positioning itself to play a larger and more confident role in the digital economy.

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