Joachim Nagel, head of the Deutsche Bundesbank, endorsed the development of a euro-pegged central bank digital currency and euro-denominated stablecoins to strengthen Europe’s payment sovereignty.
Speaking in Frankfurt, Nagel said EU officials were “working hard” on a retail CBDC and argued that euro stablecoins could help reduce reliance on US dollar-based payment systems.
“Notably, a wholesale CBDC would allow financial institutions to make programmable payments in central bank money,”
Nagel said, adding:
“I also see merit in euro-denominated stablecoins, as they can be used for cross-border payments by individuals and firms at low cost.”
His remarks come after US President Donald Trump signed legislation establishing a regulatory framework for dollar-pegged payment stablecoins under the GENIUS Act, potentially boosting the global reach of US-denominated digital assets.
Nagel previously warned that European monetary policy and sovereignty could be weakened if US dollar stablecoins gained significantly larger market share than any future euro-pegged alternative.
In Washington, lawmakers and White House officials are continuing discussions over the CLARITY Act, which aims to establish a broader regulatory structure for digital assets but remains contentious over provisions tied to stablecoin rewards.
The Bundesbank chief’s comments underscore intensifying competition between currency blocs as both the US and EU accelerate efforts to shape the regulatory and technological foundations of next-generation payment systems.