A contributor to the official blog of the European Central Bank (ECB) – long known for its critical stance on cryptocurrencies – has made a remarkable shift in tone regarding stablecoins. Europe risks losing relevance to the dollar.
As the Financial Times reports, the ECB’s crypto-skeptical voice expressed support for stablecoins for the first time – provided they are fully backed by government-issued currencies and strictly regulated. Especially in cross-border payments, such digital tokens could “potentially play a meaningful role.” The surprising statement comes at a time when new global stablecoin regulations are also coming into force.
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From bitcoin skeptics to stablecoin advocates
Just a few months ago, Jürgen Schaaf, advisor and blogger for the ECB, publicly warned of a crypto bubble. Bitcoin in particular was dismissed as speculative, volatile, and unsuitable for payment functions. This dismissive stance was extensively documented by CVJ.CH.
The fact that even these institutional critics are now offering more nuanced views shows a shift in thinking: while volatile cryptocurrencies like Bitcoin or algorithmic stablecoins remain under scrutiny, fully backed fiat stablecoins are gaining institutional acceptance. Regulation remains a central point – only with clear rules for issuers does Schaaf see added value for the European financial system.
Europe catching up with global developments
This new ECB stance is also likely a signal to policymakers. The United States has already positioned itself strategically with clear regulatory frameworks for stablecoins – most recently through the “Genius Act” passed in June. Stablecoins like USDT and USDC are increasingly being used for international payments. Europe risks falling behind in this development. The ECB appears to have recognized this: instead of closing itself off to digital transformation, it now wants to actively help shape it – though on a clearly regulated foundation.
With the ECB’s gradual shift in thinking, the path could also be cleared for European banks and payment providers to launch their own stablecoin initiatives or integrate existing solutions. Initial pilot projects, such as those by SIX Digital Exchange in collaboration with Pictet, or euro-backed stablecoins from Societe Generale, already show that interest in the industry is present. Should the ECB further clarify its stance, stablecoins could eventually become part of everyday life for European consumers – not just in B2B payments. In this context, the ECB’s role could evolve from that of a mere critic to a regulator and infrastructure partner – a step that would strengthen Europe’s competitiveness in the digital financial sector.
