Euro Goes Digital: Euro Token vs. American Rival

BTC/USD

Key zone: 108,500 - 110,000

Buy: 110,500 (on strong positive fundamentals); target 113,500-115,500; StopLoss 109,000

Sell: 108,000 (after a retest of the 110,000 level) ; target 105,500-103,500; StopLoss 109,500

The ECB is embarking on an ambitious project — the launch of a digital euro (CBDC), or else Europe risks falling into dependence on American or Chinese crypto-financial systems. Nine leading regional banks have joined forces to issue a “stable” euro coin under the MiCA regulatory framework.

Participants in the project include ING, Banca Sella, KBC, Danske Bank, DekaBank, UniCredit, SEB, CaixaBank, and Raiffeisen Bank International. The initiative is open to both private and state capital. To carry it out, a separate company has been established in the Netherlands, which will obtain an e-money issuer license. Token launch is scheduled for the second half of 2026.

The euro token will remain under ECB oversight, while EU finance ministers will have the authority to set limits on circulation and storage. Users will be able to keep funds in wallets managed either by the ECB or intermediary banks. Payments are expected to be instant and without the involvement of traditional intermediaries such as Visa or Mastercard.

The digital euro provides the ECB with the ability to directly manage monetary flows, including bypassing banks when necessary. For a regulator tasked with ensuring price stability across 20 nations, this is a critically important tool.

As of today, the total stablecoin market capitalization stands at $295 billion. USDT leads with a 58.6% share, followed by Circle’s USDC at 29.9%. Within the eurozone, the market size is estimated at $562 million, with the largest euro token being EURC on the Solana blockchain, launched by Circle at the end of 2023.

Key Risks of the Project

• Privacy: Europe prides itself on strong data protection standards, yet a state-backed digital currency raises fears of total surveillance.
• Bank Liquidity: If customers move funds en masse into digital euros, commercial banks may lose deposits — the backbone of lending. To mitigate this, the initial cap is set at 3,000 digital euros per user.

Potential Benefits

• Reduced dependence on American payment systems.
• Lower fees for businesses.
• Potential for offline payments and instant cross-border transfers.

The euro stablecoin must balance innovation with caution to avoid panic. If it ensures privacy and convenience, it has a real chance to become a popular payment instrument across Europe.

Whether the project turns into a breakthrough or a failure will ultimately be decided by the market.

So we act wisely and avoid unnecessary risks.

Profits to y’all!