A consortium of nine European banks, including Caixabank (owner of BPI), ING, and Unicredit, is set to introduce a euro-linked stable cryptocurrency. This new digital payment tool aims to become a benchmark in the European financial system.
This initiative brings together banks such as CaixaBank, ING, Banca Sella, KBC, Danske Bank, DekaBank, UniCredit, SEB, and Raiffeisen Bank International.
In a statement, the banking consortium expressed its ambition for this cryptocurrency to establish itself as a trusted reference in the European financial ecosystem.
The nine banks will create a company in the Netherlands, seeking a license as an electronic money institution to be regulated by the country’s central bank.
Stablecoins are digital assets designed to maintain a consistent value relative to a fiat currency (such as the U.S. dollar or euro) or one or more assets (such as gold). They are commonly used in digital payments and international transactions, particularly in emerging markets.
The announcement of this stable cryptocurrency by nine European banks comes weeks after the European Central Bank (ECB) president’s warning about the “liquidity risk” associated with stablecoin funds.
In early September, during the opening of the annual conference of the European Systemic Risk Board (ESRB), Christine Lagarde stated that entities holding stablecoins should mitigate the risk of mass fund withdrawals by depositors, ensuring sufficient liquidity to quickly fulfill reimbursements.
Back in July, at the ECB Forum in Sintra, Lagarde expressed concern about the risk of “the privatization of money” and the potential weakening of regional sovereignty that could result.
“I view money as a public good, and we [central bankers] as public servants. My fear is that blurring the lines could lead to the privatization of money, and that is not the goal of the work we have done,” explained Lagarde.
The European Union (EU), through the ECB, has been working on the creation of a digital euro since 2021, but the process is slow and requires approval from member states and a regulatory framework.
In June, the ECB emphasized the need to launch the digital euro, considering that cryptocurrencies could diminish the international use of the euro.
In the United States, since assuming the presidency, Donald Trump signed executive orders aimed at promoting the use of crypto-assets to drive economic growth.
