Multicurrency Stablecoins Threaten the Dollar’s On-Chain Supremacy
Stablecoins pegged to the U.S. dollar have long dominated crypto markets, dictating pricing, liquidity, collateral norms and risk profiles. But that dominance also concentrates macro risk: when U.S. Treasury markets or monetary policy wobble, the ripple effects cascade into decentralized finance. The future lies in launching regulated stablecoins denominated in the euro, yen, yuan (offshore), etc., so that on-chain finance becomes multilateral rather than reliant on Washington’s balance sheet.
Europe, Japan, and Hong Kong are already laying the groundwork. The European Union has approved EUR-pegged tokens and is pushing policy initiatives for market-making liquidity; Japan has seen regulated yen-backed tokens emerge; Hong Kong’s licensing regime provides a path for supervised, non-USD tokens with reserve transparency. If exchanges adopt non-USD base pairs and regulation supports independent attestation and redemption guarantees, the dollar’s crypto monopoly could gradually erode — without destabilizing the system.
Swiss Banks Test Blockchain for Legally Binding Deposit Payments
Several major Swiss banks (UBS, PostFinance, and Sygnum) have completed a proof-of-concept study under the Swiss Bankers Association to test blockchain-based “deposit tokens” for interbank payments. The experiment involved off-chain fiat transfers triggered by blockchain instructions, and included a use case exchanging deposit tokens for tokenized real-world assets. The participants claim it may be the first time a legally binding payment across banks has been settled via a public blockchain.
ECB’s Digital Euro Now Targeting Mid-2029 Launch, Cites Legislative Hurdles
A senior European Central Bank (ECB) official, Piero Cipollone, recently remarked that a “fair assessment” places the launch of the digital euro around mid-2029, pushing back earlier expectations. He emphasized that delays stem largely from legislative bottlenecks: the European Parliament must pass enabling laws, and agreement among EU member states has yet to be reached.
Though the ECB has advanced through its investigation phase and into preparations, significant challenges remain — especially political alignment and legal authorization. Cipollone noted that the European Parliament is expected to establish its position by May 2026, and that state-level consensus should form by year’s end.
Major European Banks Join Forces to Build MiCA-Compliant Euro Stablecoin
A coalition of nine prominent European banks, including ING and UniCredit, has announced plans to create a euro-pegged stablecoin under the EU’s forthcoming Markets in Crypto-Assets (MiCA) regulation. They have formed a new entity in the Netherlands to issue the token, targeting a launch in the second half of 2026.
This stablecoin aims to enhance Europe’s digital payments infrastructure by enabling low-cost, near-instant, 24/7 cross-border transactions, programmable payments, and streamlined settlement of digital assets. The initiative is also seen as a push for financial sovereignty in Europe, offering a regulated alternative to the dominant U.S. dollar–backed stablecoins.
Circle and Deutsche Börse Partner to Onboard USDC & EURC into European Markets
Circle, the issuer of USDC, has struck a memorandum of understanding with Deutsche Börse to list and integrate both its dollar-pegged USDC and euro-pegged EURC into Europe’s regulated capital markets infrastructure. Under the collaboration, the stablecoins will be traded via Deutsche Börse’s 3DX exchange and services offered through its post-trade arm, Clearstream, with Crypto Finance acting as sub-custodian.
The move is enabled by the EU’s Markets in Crypto-Assets (MiCA) regime, to which Circle has become one of the first global issuers to fully comply. The timing is notable, given ongoing discussions in Europe about potentially restricting multi-jurisdictional stablecoins.
France’s Soaring Deficit Deemed “Great” for Bitcoin by Arthur Hayes
France’s central bank reported a roughly €7.7 billion net loss in 2024, contributing to a government deficit exceeding €168 billion (5.8 % of GDP), well above the EU’s 3 % threshold. Arthur Hayes—cofounder of BitMEX—argues this large shortfall is likely to trigger significant money printing by the ECB, which in turn could funnel fresh capital into Bitcoin as investors seek alternatives to inflationary fiat.
Hayes suggests that French capital is already exiting toward markets like Germany and Japan, placing additional pressure on the ECB to respond via quantitative easing or other monetary expansion. In his view, regardless of whether the ECB prints now or later, the increasing liquidity inflows may prove “great” for crypto, as investors hedge against weakening currency and central‐bank overreach.