ECB’s Lane Backs Digital Euro to Avoid Rising Stablecoin Risks

Europe needs a digital currency to safeguard against threats from new forms of money like stablecoins, and reduce reliance on US payments firms amid heightened political tensions, European Central Bank Chief Economist Philip Lane said.

A digital euro would “limit the likelihood of foreign-currency stablecoins gaining a foothold as a medium of exchange in the euro area,” Lane told a conference in Cork, Ireland. “The digital euro is not just about making sure our monetary system adapts to the digital age. It is about ensuring that Europe controls its monetary and financial destiny, against a backdrop of increasing geopolitical fragmentation.”