US dollar stablecoin mercantilism is an opportunity to promote payment multilateralism and the international role of the euro

Sebastian Ujică

The EU and the US have taken starkly different approaches to the regulation of new monies issued using distributed ledger technology. The current US administration prefers dollar-backed stablecoins, with the aim to reinforce dollar dominance worldwide. This column argues that dollar-pegged stablecoins pose a risk for the EU, but the current legal framework can ensure financial stability and prevent the digital dollarisation of the European economy. However, third countries without such