Europe’s finance chiefs will use euro-backed stablecoins and pooled debt to counter US dollar
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Finance ministers across Europe will meet on February 16 to decide how to fight back against the global control of the US dollar. According to a document prepared by the European Commission, they’ll talk about launching euro-denominated stablecoins and expanding joint EU debt. This is a survival plan. The euro makes up only 20% of global currency reserves, while the dollar holds about 60%. Europe’s leaders want to change that before they lose more ground. The paper, reportedly seen by Reuters, says the EU needs to act now. It warns that the global financial system is being “weaponised” and that the bloc must protect its economic power. “Faced with the risk of increasing weaponisation of the international monetary and financial system, the EU needs to act to strengthen its economic and financial security and the capacity to promote its own interests,” the document reads. Finance ministers push for euro-backed stablecoins and digital euro tools The euro is used by 21 of 27 EU countries, but it’s still not dominant in digital finance. Dollar-backed stablecoins like USDT and USDC make up nearly the entire stablecoin market. Euro-based ones barely crack 1%. That’s quite embarrassing, and also dangerous. If things stay like this, capital will keep flowing out of Europe and straight into US markets, which boosts American assets and leaves European ones weaker. The Commission said it’s time to flood the market with euro-based digital assets. They want to introduce stablecoins, tokenized deposits, and even central bank digital currencies (CBDCs), all backed by the euro. At the same time, they’re telling governments to deal with the risk of stablecoins pegged to foreign currencies, especially the dollar. They also want to grow the euro-denominated debt market. That means more joint EU debt, and not just for show. The paper calls for “EU…
Filed under: News - @ February 6, 2026 2:23 pm