{"id":161947,"date":"2025-07-06T13:00:39","date_gmt":"2025-07-06T10:00:39","guid":{"rendered":"https:\/\/cryptodnes.bg\/en\/?p=161947"},"modified":"2025-07-06T12:05:07","modified_gmt":"2025-07-06T09:05:07","slug":"eu-risks-falling-behind-in-digital-finance-warns-former-ecb-board-member","status":"publish","type":"post","link":"https:\/\/cryptodnes.bg\/en\/eu-risks-falling-behind-in-digital-finance-warns-former-ecb-board-member\/","title":{"rendered":"EU Risks Falling Behind in Digital Finance, Warns Former ECB Board Member"},"content":{"rendered":"<p>Writing in the Financial Times, Bini Smaghi\u2014who now serves as chair of Soci\u00e9t\u00e9 G\u00e9n\u00e9rale\u2014warned that despite having regulatory frameworks like MiCA, the EU remains hesitant to fully integrate digital assets into its financial system. The Markets in Crypto-Assets (MiCA) law, which recently came into force, requires stablecoin issuers to back their tokens with cash and high-quality sovereign debt. In parallel, the bloc is testing a pilot regime for trading financial instruments on blockchain-based distributed ledgers.<\/p>\n<h2>Lack of euro-based stablecoins raises sovereignty concerns<\/h2>\n<p>Still, Bini Smaghi noted that the euro is nearly absent from the growing stablecoin market, which remains dominated by dollar-pegged assets. He argued that this lack of participation is due to banks and policymakers in the EU being overly cautious or skeptical about blockchain innovation.<\/p>\n<p>\u201cThis hesitation could carry serious consequences,\u201d he wrote, adding that if European consumers and businesses increasingly rely on dollar-based stablecoins for payments and savings, capital could shift away from euro-area banks to U.S.-linked digital platforms.<\/p>\n<p>Such a trend, he warned, could reduce the European Central Bank\u2019s influence over monetary policy and destabilize traditional banking institutions in the region. With global finance rapidly shifting toward tokenized money and decentralized infrastructure, Bini Smaghi believes the EU must act decisively to remain relevant.<\/p>\n<p><div class=\"read-more pb-3 pt-3 pt-md-2 px-3 my-4 border bg-light\">\n    <h5 class=\"text-uppercase border-bottom mb-3 pb-1\">Read More:<\/h5>\n    <a class=\"article row post-161888\" href=\"\" title=\"\">\n        <div class=\"contentRight col-4\">\n            <span class=\"imgContainer mt-0\">\n                <img class=\"image img-defer\" src=\"\">\n            <\/span>\n        <\/div>\n        <div class=\"contentLeft col-8\">\n            <h4 class=\"title mb-0\"><\/h4>\n        <\/div>\n    <\/a>\n<\/div>\n<\/p>\n<h2>Conclusion<\/h2>\n<p>Bini Smaghi\u2019s warning comes at a pivotal time, as digital finance accelerates globally and stablecoins become increasingly integrated into mainstream payments and financial systems. While MiCA provides a foundational regulatory framework, regulation alone is not enough if adoption lags behind. The euro\u2019s near absence from the stablecoin landscape is a clear signal that Europe risks being a bystander in a dollar-dominated digital economy.<\/p>\n<p>To prevent capital outflows and safeguard monetary sovereignty, EU institutions must not only regulate but also innovate\u2014encouraging banks to issue euro-backed stablecoins, integrating blockchain solutions into public infrastructure, and promoting competition with U.S.-led platforms. The digital transformation of money is no longer a distant prospect\u2014it is unfolding in real time. If Europe wants to retain financial independence and global relevance, hesitation is no longer an option. The challenge now is not creating rules but building momentum, trust, and the infrastructure to support a competitive euro-denominated digital future.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Europe\u2019s reluctance to embrace stablecoins and blockchain technology could erode its monetary sovereignty and marginalize the euro in the next phase of global finance, according to former European Central Bank board member Lorenzo Bini Smaghi.<\/p>\n","protected":false},"author":7,"featured_media":132584,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[22],"tags":[424,71],"coin_category":[],"class_list":["post-161947","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-crypto","tag-stablecoin"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - 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