Eurozone finance ministers are set to meet on Feb. 16 to explore the integration of euro-denominated stablecoins and central bank digital currencies (CBDCs) to enhance the euro's global standing, Reuters has learned.
The European Commission is preparing a set of proposals aimed at strengthening the euro's role in the international monetary system. These proposals are expected to include the issuance of euro-denominated stablecoins, tokenized deposits, and CBDCs.
Currently, the euro accounts for approximately 20% of global currency reserves, compared to about 60% for the U.S. dollar, the report reads.
Despite this significant presence, euro-denominated instruments make up less than 1% of the stablecoin market, which is predominantly dominated by U.S. dollar-pegged assets.
Economic security is a central theme of this meeting. The commission has highlighted the need for the EU to act decisively in strengthening its economic and financial security. This includes proposals for joint EU debt issuance to finance common projects, potentially increasing the euro's appeal in global financial markets.
As The Defiant reported earlier, analysts at credit rating agency S&P Global anticipate that the growth of euro stablecoins will likely be driven by real-world asset (RWA) tokenization rather than payments.
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