In an unprecedented move, nine of the largest European banks announced the formation of a strategic alliance aimed at launching the first euro-pegged stablecoin compliant with the European Union's regulations on digital assets (MiCAR) by the second half of 2026. This initiative represents a fundamental shift in the European financial landscape, as the old continent seeks to reduce its reliance on dollar-pegged stablecoins and build an independent and reliable European digital payment system.

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Participating banks: Financial and political weight

The alliance includes major banking names such as:

- ING (Netherlands)

- KBC (Belgium)

- Danske Bank (Denmark)

- UniCredit (Italy)

- CaixaBank (Spain)

- In addition to other banks like SEB, Banca Sella, DekaBank, and Raiffeisen Bank International.

The presence of these giant institutions reflects the seriousness of the project, especially since some are classified as globally systemically important banks, meaning their entry into the stablecoin sector will change the rules of the game.

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Declared objectives

The alliance clarified that the goal of launching the stable euro is:

1. To create a reliable European standard for digital payments.

2. To provide a strategic alternative to dollar-pegged stablecoins like USDT and USDC.

3. To enhance European financial sovereignty amid increasing competition with the United States and China.

4. To accelerate financial innovation through programmable payments, digital asset settlement, and improved supply chain management.

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Regulatory framework: Strict commitment to MiCAR

- A new company has been established in the Netherlands to serve as the legal entity for the project.

- The alliance is currently applying for an electronic money institution license from the Dutch central bank.

- The stablecoin will be fully subject to the MiCAR framework, which aims to regulate the digital asset market in the European Union and ensure transparency and investor protection.

This strict commitment to regulations reflects the banks' desire to offer a non-speculative stablecoin, backed by reserves, and subject to direct oversight from monetary authorities.

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Leadership statements

Fiona Melrose, head of strategy at UniCredit, confirmed that the project represents "the embodiment of European banks' desire to cooperate to drive financial innovation," noting that this step will meet the growing demand for blockchain-based payment solutions, while also being compliant with the laws.

For their part, officials at SEB and Raiffeisen emphasized that the European stablecoin will provide "a new financial infrastructure" capable of supporting instant cross-border payments, reducing costs, and enhancing efficiency.

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Global context: The stablecoin race

- In the United States, currencies like USDT and USDC dominate the global market, with their combined market value exceeding $150 billion.

- PayPal entered the market with its stablecoin PYUSD, reflecting the interest of major technology companies.

- The US CFTC recently initiated an effort to study the use of stablecoins as collateral in derivatives markets, indicating a rapid integration into the traditional financial system.

In this context, the launch of the stable euro represents a serious European attempt to reduce dependence on the dollar and enhance the euro's status as a global digital currency.

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Potential implications

1. On the European market: The stable euro could become a key payment tool in e-commerce, cross-border remittances, and interbank settlements.

2. On global competition: The project could limit the dominance of American stablecoins and open the door to a "multipolar" landscape in the digital currency market.

3. On financial innovation: Participating banks will be able to develop digital wallets, asset custody services, and programmable payment solutions based on the stablecoin.

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Challenges

- Regulatory approvals: The project will not see the light of day before obtaining the green light from the Dutch central bank and European authorities.

- Public trust: The success of the stablecoin depends on convincing users that it is safer and more transparent than its American counterparts.

- Institutional adoption: Banks must prove that the new currency is not just an experiment, but a practical tool that serves the real economy.

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Summary

The announcement of the European banks' alliance to launch the first MiCAR-compliant stable euro represents a strategic turning point in the global digital currency landscape. If the project succeeds, it will serve as a new financial infrastructure that enhances Europe's independence and reshapes the competitive landscape in the stablecoin market, currently dominated by the United States.

And while the project is still in its early stages, the mere entry of these giant banks into the digital space sends a clear message: the financial future will be digital, and Europe does not intend to remain a bystander.

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