Euro Stablecoin Imbalance Threatens EU's Financial Future

EMBank Chairman Ekmel Çilingir has published an article discussing the role of euro stablecoins in Europe's future financial infrastructure.

Çilingir argues that the global stablecoin market, which reached around USD 300 billion by mid-2026, is heavily skewed towards US dollar-denominated stablecoins, with over 99% of its value linked to the US dollar.

This imbalance matters because currencies can gain lasting advantages when they are widely used across various platforms and markets. Çilingir notes that Europe faces a practical monetary question: whether the euro will remain operationally relevant in a world where value moves through programmable, always-on, borderless financial networks.

The article also considers the potential uses of euro stablecoins outside of crypto trading, including round-the-clock payments, faster cross-border settlement, and automated supplier payments. However, Çilingir emphasizes that regulatory approval alone will not be enough to secure market use, highlighting the need for liquidity, distribution, trusted reserve arrangements, access to exchanges, banking relationships, and clear commercial applications.

Çilingir also suggests that privately issued euro stablecoins and a potential digital euro should not be treated as direct rivals. Instead, they can serve different purposes: central bank money versus commercial platforms and tokenized markets.