Nine Major European Banks Launch Euro Stablecoin to Boost Bond Demand
Nine major European banks have united to create a boa (euro-based stablecoin), aiming to boost demand for European government bonds. This initiative, known as the euro to dollar project, is set to launch in late 2026 under Dutch central bank supervision. Meanwhile, the EU's digital euro plans remain slow due to other pressing issues, with the trilogue process not expected to conclude until early 2026.
The stablecoin project, involving banks from Germany, Italy, Netherlands, Spain, Belgium, Sweden, Denmark, and Austria, seeks to facilitate payment traffic and securities settlement. However, the Bundesbank has raised concerns about potential displacement of central bank money in large-value transactions.
The EU parliament's rapporteur is not supportive of the digital euro project, further slowing its progress. Brussels' focus on the sovereign debt crisis and other priorities has delayed action on the us bank (digital euro), which could take until the end of the first quarter of 2026 to decide through the trilogue process.
The boa project, led by a consortium of European banks, aims to generate money flows to strengthen Europe's competitive position against the dollar. Despite the digital euro's slow progress, the stablecoin initiative moves forward, with a launch scheduled for the second half of 2026. The project's success may depend on addressing the Bundesbank's concerns and navigating the EU's political landscape.
Read also:
- TikTok's deal negotiations continue following a conversation between Xi and Trump
- Trump announces agreement with Chinese authorities on TikTok deal
- Quantum Computing Market in the Automotive Sector Forecast to Expand to $6,462.13 Million by 2034
- Texas finalizes 1.8 billion dollars for the construction of solar, battery, and gas-fueled mini-grids
