The European Central Bank (ECB) reaffirmed its commitment to keep public money, both physical and digital, at the core of Europe’s financial system as stablecoins and private digital currencies gain traction worldwide. The ECB is developing a state-backed digital euro to complement banknotes and coins, limiting foreign currency stablecoins’ potential use in Europe. Despite the push for digital currency, cash remains indispensable, especially in times of crisis when digital infrastructure may not be accessible.

ECB adviser Jürgen Schaaf warned of stablecoin dominance without common rules, calling for global coordination to combat US dollar stablecoin dominance. The European Union has strategic options to address this, including regulated, euro-pegged stablecoins, distributed ledger technology (DLT) applications, and the digital euro. A showdown between Bitcoin and stablecoins looms as the GENIUS Act nears.

Read more at Cointelegraph: ECB Reaffirms Commitment to Cash as Digital Euro Advances