EU Banks Unite to Launch Euro Stablecoin Amid Growing Digital Currency Competition
A consortium of 10 European banks, operating under the Amsterdam-based entity Qivalis, is working to launch a euro-pegged stablecoin in the second half of 2026, pending regulatory approval from the Dutch Central Bank. The initiative, which includes BNP Paribas, aims to create a stablecoin compliant with the EU's Markets in Crypto-Assets (MiCA) framework. Qivalis CEO Jan-Oliver Sell emphasized that a native euro stablecoin represents "monetary autonomy in the digital age," offering European companies and consumers new opportunities to engage with blockchain payments and digital asset markets in their own currency.
Currently, euro-denominated stablecoins represent less than 1% of the global market with a market cap under €350 million ($407 million). Meanwhile, major player Tether has exited the EU market, ending redemptions for its euro-pegged EURt coin in November 2024, citing challenges with MiCA regulations.
IMF Highlights Fragmented Global Approach to Stablecoin Regulation
The International Monetary Fund (IMF) has released a comprehensive report examining the growing stablecoin market and the adequacy of current global regulations. The report analyzed regulatory frameworks across the United States, United Kingdom, Japan, and the European Union, finding that while emerging regulations could help mitigate macrofinancial stability risks, the landscape remains highly fragmented. The IMF expressed concerns about the proliferation of stablecoins across different blockchains and exchanges, which creates inefficiencies due to lack of interoperability and introduces regulatory differences and transaction hurdles between countries.
The IMF emphasized that beyond patchwork regulations, addressing stablecoin risks requires "strong macro-policies and robust institutions." In the US, regulators have been working to establish a comprehensive framework for payment stablecoins following the GENIUS Act, which has effectively separated liquidity into distinct pools for US and EU stablecoins.
Elon Musk's Shift: From Government Efficiency to Bitcoin Advocacy
Elon Musk has sparked renewed interest in Bitcoin after making viral comments about the cryptocurrency's intrinsic connection to physical energy and its potential to replace fiat currency. Speaking with entrepreneur Nikhil Kamath, Musk emphasized that energy cannot be legislated or printed into existence, suggesting society could move toward a system where "power generation" becomes the de facto currency. Bitcoin mining advocate Daniel Batten believes Musk's failed efforts with the Department of Government Efficiency (DOGE) to address U.S. government spending opened his eyes to the limitations of fiat monetary systems, pushing him toward recognizing Bitcoin's value as an energy-backed, inflation-resistant protocol.
Saylor Proposes Bitcoin-Backed Digital Banking System for Nation-States
Michael Saylor, executive chairman of MicroStrategy and the world’s largest corporate holder of Bitcoin, has proposed that nation-states adopt Bitcoin-backed digital banking systems to attract trillions in global capital. Speaking at the Bitcoin MENA event in Abu Dhabi, Saylor outlined a model where countries could use overcollateralized Bitcoin reserves—paired with tokenized credit instruments—to offer regulated, high-yield digital bank accounts.
He argued that with traditional bank deposits in Europe, Japan, and Switzerland yielding little or nothing, investors are increasingly turning to riskier markets. His proposed structure includes 80% digital credit instruments, 20% fiat, and a 10% reserve buffer to minimize volatility, backed by a 5:1 overcollateralization of Bitcoin. Saylor believes such a system could position a country as the "digital banking capital of the world," potentially attracting $20 trillion to $50 trillion in deposits.
Visa Launches Stablecoin Advisory Practice as Onchain Dollars Gain Mainstream Traction
Visa has announced the creation of a global Stablecoins Advisory Practice, a new business unit designed to assist banks, merchants, and fintechs in developing and deploying stablecoin solutions. The advisory arm will offer expertise in stablecoin integration, including training, market strategy, and technology enablement, reflecting the growing importance of onchain dollars in the payments ecosystem.
This move underscores Visa’s long-term investment in stablecoins, with over 130 stablecoin-linked card programs in more than 40 countries and billions in annualized USDC settlement volume already on its network. The initiative aligns with a broader industry shift, as companies like Stripe, PayPal, and JPMorgan increasingly adopt stablecoins for faster, lower-cost transactions.
XRP, Zcash, and Algorand Lead Resurgence in 2025 Amid Regulatory Clarity and Privacy Demand
In 2025, while the broader altcoin market struggled under regulatory scrutiny and macroeconomic headwinds, three cryptocurrencies XRP, Zcash, and Algorand emerged as standout performers.
XRP rallied more than 35% in July after a favorable resolution of its prolonged legal dispute with U.S. regulators and the debut of a Canary Capital XRP ETF, which initially drew notable institutional interest. Privacy-focused assets also saw an outsized surge during the year, with Zcash soaring over twelvefold to a peak near $744, driven by heightened demand for financial privacy amid stricter KYC/AML rules and renewed enthusiasm for zero-knowledge technology. However, this momentum proved difficult to sustain, and by year-end much of the sector had retraced its gains, with XRP sliding back to roughly $1.80.