ECB Economist Warns of Dollar Stablecoin Threat, Backs Digital Euro

The European Central Bank (ECB) needs a digital euro to counter the growing influence of dollar-pegged stablecoins and U.S. payment platforms in Europe’s financial system, according to ECB Chief Economist Philip Lane.

Speaking at University College Cork, Lane emphasized that the dominance of Big Tech payment services like Apple Pay, Google Pay, and PayPal exposes Europe to economic risks and coercion. He argued that a CBDC (Central Bank Digital Currency) under European governance would reduce dependence on foreign payment providers while ensuring a secure and universally accepted digital transaction method.

Lane highlighted that 99% of stablecoins are tied to the U.S. dollar, increasing the risk that the euro area’s financial ecosystem could become anchored to foreign currency rather than the euro itself. He warned that if dollar stablecoins gain traction in Europe, local financial systems could become vulnerable to external economic pressures.

The ECB is actively exploring the digital euro to address these challenges. Unlike the U.S. or China, the eurozone’s financial landscape is fragmented due to diverse payment standards across its 20 member states. Lane sees the digital euro as an opportunity to unify Europe’s retail payment systems and strengthen monetary sovereignty.

As central banks worldwide assess digital currencies, the ECB’s push for a CBDC reflects broader concerns about private stablecoins and corporate-controlled payments dominating global finance. Lane’s remarks reinforce the need for Europe to take proactive steps in securing its financial infrastructure against foreign monetary influence.