Euro Stablecoins Lag Behind US Dollar Dominance in Global Market

The global stablecoin market has reached approximately USD 300 billion by mid-2026, with over 99% denominated in US dollars. However, euro stablecoins represent a mere EUR 1 billion. Ekmel Çilingir, Chairman of the Supervisory Board at European Merchant Bank (EMBank), examines this imbalance and its implications for EU monetary sovereignty.

Çilingir notes that the market's dominance by dollar-denominated stablecoins poses a strategic question: will the euro become a native currency in digital financial systems or will Europe rely on dollar-based rails? He argues that adoption may strengthen the position of the US dollar, making it increasingly difficult to displace.

The article also reviews the EU's Markets in Crypto Assets Regulation (MiCA), which Çilingir describes as an important framework for reserve management, redemption, disclosure, and supervision. However, he cautions that legal certainty alone will not lead to widespread adoption, citing the need for liquidity, distribution, exchange access, banking relationships, and practical use cases.

Çilingir rejects the view that a digital euro would necessarily compete with regulated stablecoins, suggesting instead that central bank money, commercial bank deposits, tokenised deposits, and stablecoins may coexist in a multi-layered financial system. He concludes that Europe's position will depend on adoption, interoperability, and international use.