TL;DR

Europe prepares a strategy to expand euro-backed stablecoins and a deeper market for common EU debt as a response to the dominance of the US dollar.
Officials argue that digital assets linked to the euro can strengthen financial autonomy and attract capital that now flows to American instruments.
The plan also includes reforms to payments and investment rules to keep European savings inside the region and increase the global use of the euro.

Europe’s finance ministers gather on February 16 to review measures designed to reduce the weight of the US dollar in trade and digital finance. The proposal promotes the creation of euro-denominated stablecoins and a larger pool of jointly issued debt. Supporters see this as a practical route to modernize the continent’s capital markets and give crypto innovation a clearer home inside the European Union.

The euro represents close to 20% of global reserves while the dollar remains near 60%. Policymakers fear that the gap could widen as blockchain payments and tokenized finance expand. A document prepared for the meeting describes the need for new tools that protect economic independence and allow companies to settle international business in euros without friction.

Stablecoins And The New Architecture Of European Finance

Dollar-linked tokens such as USDT and USDC control most of the current stablecoin market, and euro alternatives stay below 1%. The Commission proposes incentives for private issuers to launch regulated euro coins and for banks to experiment with tokenized deposits. Officials argue that a strong crypto ecosystem can keep investment inside the region and offer startups access to transparent funding.

The plan also encourages the European Central Bank to test digital settlement rails that work with decentralized platforms. Several member states already host pilot projects in securities tokenization, and advocates believe these experiences can scale if clear rules arrive. Pro-crypto groups welcome the initiative and say Europe could become a hub for compliant innovation rather than a follower of US policy.

Shared Debt And Payment Sovereignty

Another pillar is the expansion of common EU bonds. The bloc has around €1 trillion in joint liabilities, far below the $27 trillion US Treasury market. Economists involved in the discussion claim that a larger and more liquid euro debt curve would support pension funds and provide safe collateral for crypto markets based in Europe.

The paper suggests building an EU-controlled payment network to reduce dependence on foreign card companies. It also recommends that external aid and major energy contracts be invoiced in euros. Nearly €10 trillion in household savings sit across the continent, and harmonized investment rules could direct part of that capital toward digital projects and green infrastructure.

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Filed under: News - @ February 6, 2026 6:29 pm