European Banks Launch Joint Project to Create Digital Euro
Nine major European Union banks are collaborating on a groundbreaking project: the development of a new cryptocurrency, a “euro-stiblkoin,” aimed at establishing a strong presence in the European digital payment market and challenging the dominance of American USDT (Tether).
A Powerful Alliance & Regulatory Framework
The initiative brings together financial powerhouses including ING, Banca Sella, KBC, Danske Bank, Dekabank, UniCredit, SEB, Caixabank, and Raiffeisen Bank International.This collective effort signals a serious commitment to entering the digital finance landscape. The euro-stiblkoin will operate in full compliance with the EU’s MICA (Markets in Crypto-Assets) regulation, ensuring a secure and transparent framework for transactions.
To facilitate this aspiring undertaking, the banks have already established companies in the Netherlands, seeking a license from the Central Bank of the Netherlands to operate as an electronic money issuer under its direct supervision. The first coins are anticipated to be in circulation by the second half of 2026.
faster, Cheaper, and More Accessible Finance
This initiative has the potential to attract further participation from the banking sector, with ongoing discussions to appoint an Executive Director pending regulatory approval.
The new digital instrument promises near-instantaneous transfers with minimal fees,enabling seamless cross-border settlements and streamlining supply chain management and digital asset handling. For consumers, this translates to a new era of financial services – the ability to make euro payments 24/7, without geographical limitations or lengthy delays.
Flora Lukts, Head of the Digital Assets Unit and a project spokesperson, highlights the benefits of blockchain technology, enabling 24-hour settlements in multiple currencies and increasing clarity.She emphasizes that adhering to uniform standards is crucial, comparing it to a common language in international interaction – facilitating and accelerating all processes.
Global Competition Heats Up
While European banks are developing their solution, other global players are also making moves. forge, a subsidiary of French bank Socgen, has already launched the first euro Steiblkoin compliant with MICA regulations. Its dollar version, USDCV, recently selected Birža Bullish Europe as its first quotation site. Furthermore, China is actively pursuing its own Steiblkoin development.
Analysts are watching closely to see if the European euro-stiblkoin can successfully compete with established players like USDT and even Bitcoin, which is nearing the value of gold. Irrespective of the outcome, this development marks a significant turning point in the future of digital finance.
