EU Seeks to Boost Digital Finance with Tokenisation and Stablecoins
The European Parliament has adopted a resolution to strengthen Europe's digital finance by promoting tokenisation, stablecoins, and the development of the digital euro. The goal is to keep investment, technological development, and payment innovation in Europe while reducing dependence on foreign infrastructure.
According to the resolution, tokenisation could make capital markets more efficient, lower operating costs, increase transparency, and facilitate cross-border investment. Tokenised securities must provide the same rights as traditional ones, preventing regulatory arbitrage and ensuring investor protection.
The European Parliament also expresses concern over the rapid growth of US dollar-denominated stablecoins, warning that their dominance could weaken the EU's monetary sovereignty and increase risks to financial stability. MEPs encourage the development of euro-denominated e-money tokens, which are already provided for under MiCA.