Europe Accelerates Development of Dollar-Alternative Stablecoins

The European Union is accelerating its efforts to develop an alternative to US dollar stablecoins. Two parallel paths are emerging: the digital euro, which will prioritize user privacy, and private euro stablecoins like EURR, issued by Revolut.

According to Piero Cipollone of the European Central Bank's executive committee, the digital euro will provide the highest level of privacy possible under current technology. Offline transactions will be anonymous between payer and payee, while online transactions will not directly identify individuals but allow banks to access necessary information for anti-money laundering.

Meanwhile, private institutions are already pushing forward with their own euro stablecoins. Revolut has begun testing EURR in Denmark, Poland, and Portugal, with plans to expand it across the entire European Economic Area. The EURR runs on the Ethereum network and is issued by Bridge Building, a subsidiary of Stripe.

Forbes notes that these two paths are not mutually exclusive: the digital euro will be a publicly issued currency, while private stablecoins like EURR will be issued by private institutions. The European digital currency market is developing along both lines, with competition focusing on user privacy, availability, regulatory clarity, and actual economic value.