Reply to stablecoins is wholesale CBDC, not retail digital euro

18 September 2025

The rise of stablecoins has raised concerns about the role of the euro in the digital age. However, suggestions to accelerate the introduction of the digital euro for consumers in response to US stablecoins lacks economic and practical justification.to counterbalance the arrival of stablecoins, the further development of a so-called wholesale CBDC, digital central bank money for professional parties, is much more obvious.

By Marnix Blom, manager strategy at Payments Association Netherlands and Edward van der Woerd, policy advisor digital finance at the Dutch Banking Association

Wapperende vlag van de Europese Unie met gele sterren op blauwe achtergrond, symbool voor Europese samenwerking en regelgeving.

Stablecoins are digital tokens linked to a fiat currency, usually the US dollar. In the United States, issuance and management of stablecoins is regulated by the Genius Act. They are mainly used in crypto markets and international business transactions, not for everyday consumption.furthermore, stablecoins combine the advantages of blockchain technology – such as decentralisation, transparency and efficiency – with the stability of traditional currencies, giving them a technological edge in wholesale transactions.

However, stablecoins also bring complex policy and regulatory challenges, such as concerns about financial stability, supervision and coverage with US debt securities. Their emergence may also have implications for Europe. For instance, relationships in the global capital market may shift when stablecoins take off. It therefore makes sense for the ECB to develop the aforementioned wholesale CDBC as a counterweight. Indeed, a wholesale CDBC is aimed at, among other things, more efficient cross-border business payments, exchange trading and liquidity management at financial institutions, without reliance on complex stablecoins.

The euro is stable, widely accepted and existing euro-based payment instruments offer good protection to European consumers thanks to regulation. In contrast, dollar-based stablecoins carry currency and counterparty risks. They depend on foreign regulations and lack the consumer protection offered by traditional electronic euro payments. For retailers, accepting stablecoins would mainly mean additional costs and complexity, with no clear benefits.so there is no indication that consumers and business owners would switch to stablecoins en masse for their shopping and bills.

The retail digital euro should stem from European needs and values. European consumers and entrepreneurs have no incentive to switch to a foreign digital currency for everyday payments. Let us not cloud the social debate by portraying the retail digital euro as the answer to stablecoins.