European Banks to Launch Stablecoin in 2026, Challenging US Dominance
BRUSSELS - ING and other leading European banks are collaborating to launch a new stablecoin by 2026, aiming to challenge the current market dominance of American companies like Tether and Circle. the move comes amid concerns over the potential for US-based stablecoins to destabilize financial markets and a desire to retain control over European payment infrastructure.
Currently, Tether and Circle control the vast majority of the stablecoin market. European banks see stablecoins as a way to streamline international payments, which can be “made very quickly and cheaply” with the technology, according to Dennis Post, a crypto expert at Consultancy EY.
However, some experts question the immediate benefits for consumers within the eurozone, where payments are already relatively efficient. Dirk Bezemer, professor of financial economy at the University of Groningen, believes the initiative is largely driven by banks seeking to protect their market share and revenue streams. ”Banks have a monopoly on the system on which payment transactions take place and earn from every transaction,” Bezemer stated. “European banks lose control of payment traffic, as soon as transactions can also be done with American stablecoins.”
The development also coincides with efforts by the European Central Bank (ECB) to create its own digital euro, fueled by fears that unstable American stablecoins could “cause chaos in the financial markets,” Bezemer added.
In the United States,President Trump has advocated for reduced regulation of digital coins,and the American congress recently passed legislation intended to integrate stablecoins more easily into the customary financial system. This move is expected to attract traditional investors like banks and insurers to the crypto market, but Post and Bezemer warn that less regulation increases the risk of financial shocks, particularly if heavily linked to American stablecoins.
