The post Bundesbank pushes Euro CBDC as stablecoin market set to hit $500B by 2028 appeared on BitcoinEthereumNews.com.

The Deutsche Bundesbank, the central bank of the Federal Republic of Germany, recently released a statement outlining its strong commitment to fostering substantial adoption of a digital euro in the country. In response to this announcement, analysts anticipated that the international stablecoin market would hit a record of around $500 billion by 2028. Nonetheless, officials at the European Central Bank (ECB) raised concerns about the dominance of dollar-pegged stablecoins. According to them, this state poses a risk to the effectiveness of ECB monetary policy transmission. Afterwards, they outlined the importance of a central bank digital currency (CBDC) for the industry, arguing that it enhances the resilience of the financial system and improves the effectiveness of monetary policy across the euro area. Nagel views the euro-denominated stablecoins as a game-changer for the industry  Earlier, the President of the Deutsche Bundesbank, Joachim Nagel, advocated for the creation of a CBDC linked to the euro and the use of euro-denominated stablecoins in the financial sector. This support was observed when he delivered a speech at the American Chamber of Commerce’s New Year’s Reception in Frankfurt. At this particular moment, Nagel noted that EU officials are actively pushing to launch a retail central bank digital currency. Their strong commitment in the sector aligns with the head of the Bundesbank’s belief that regulated, euro-denominated stablecoins can boost Europe’s competitiveness in digital payments, particularly regarding financial transaction infrastructure and fintech solutions. To break this point down for better understanding, Nagel emphasized that, “A wholesale CBDC would enable financial institutions to carry out programmable payments using central bank money.” He also stressed the role of euro-denominated stablecoins in the finance sector, noting their capacity to facilitate cost-effective, transnational transactions for both consumer and commercial entities. Concerning Nagel’s remarks, analysts asserted that this new perspective proves a rising…

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Filed under: News - @ February 17, 2026 1:21 am