US stablecoins dominate 99% of the global market. China is advancing with the e-CNY. Europe, supported by MiCA and the first euro stablecoin regulated by BaFin, the EURAU, wants to close the gap. But can it move quickly enough?
BeInCrypto spoke with Gracy Chen, CEO of Bitget, about Europe's strengths, its regulatory challenges, and whether the EU can still play a leadership role in digital finance.
Europe vs. USA: two competing models
BeInCrypto: How do you evaluate Europe's position in relation to the USA and Asia?
Gracy Chen: Europe is anchored in MiCA, which offers a unified legal framework but imposes a heavy compliance burden. Issuers must maintain full reserves, have substantial capital, and obtain an EMI license. This protects users but raises entry barriers and slows growth.
On the other hand, she said, the US GENIUS Act takes a lighter, innovation-focused approach. This has allowed private issuers like Circle and Tether to scale quickly, integrating USDC and USDT into Visa and Mastercard networks.
Meanwhile, Asia remains focused on CBDCs, with private stablecoins still playing a limited role.
Is MiCA enough to drive innovation?
BeInCrypto: Does MiCA promote innovation, or does Europe need more flexibility?
Chen: MiCA is a solid foundation, but Europe needs three adjustments: faster authorization for CASPs and issuers, stronger support for multi-bank reserve models like EURAU, and harmonized implementation across member states.
Without these changes, Europe risks regulatory fragmentation and slower adoption.
EURAU and European sovereignty
BeInCrypto: What does the launch of EURAU mean for Europe?
Chen: EURAU is a crucial step. As the first crypto asset in euros regulated by BaFin in Germany, it offers a compliant alternative to USD stablecoins and strengthens Europe's monetary sovereignty. Regulatory clarity, she added, is the trigger for institutional adoption and cross-border payment use cases.
What should Europe do to stay competitive?
BeInCrypto: What are the most urgent steps for the EU?
Chen: Europe must move from political clarity to operational readiness. The priority is to accelerate euro-compatible stablecoins in line with MiCA, with native integration of SEPA Instant or TIPS, allowing for quick and low-cost ramps.
Europe also needs level 2 standards, passport for the whole EU, and explicit rules for yield-bearing products like tokenized T-bills — an area where the EU can differentiate itself from the US.
Infrastructure is also important. Europe needs unified fiat ramps, merchant acceptance programs, interoperability rails, and a common supervisory guide.
A dedicated sandbox for stablecoins and toolkits for developers could attract new issuers and close the innovation gap.
Building trust: compliance and technology
BeInCrypto: What builds trust in European stablecoins?
Chen: Transparency and audited reserves. MiCA's quarterly reporting requirements help prevent the opacity that led to the collapse of TerraUSD.
Mandatory integration of AML/KYC and audited secure smart contracts provide additional security for institutions and retail users.
Will Europe become a leader in stablecoins?
BeInCrypto: Can Europe compete in the next 3–5 years?
Chen: Europe can become a respectable player, but it is unlikely to surpass the US, which already controls nearly the entire market through mature private sector ecosystems. Europe's advantage lies in regulatory clarity — but it must accelerate innovation to transform this landscape into real adoption.
Regulation gives Europe an edge — innovation will determine the rest.
Europe has what other regions lack: a complete and unified regulatory framework. But just having rules won't close a 99% gap in the market.
As Gracy Chen warns, the EU needs to combine MiCA with speed, infrastructure, and incentives. Whether that is enough to challenge US dominance remains Europe's main test — and the answer will come quickly.
The article Can Europe catch up to the US in the stablecoin race? CEO of Bitget opines was first seen on BeInCrypto Brazil.
