Germany’s Central Bank President Backs Euro Stablecoins and CBDC for EU Payment Independence

The president of the Deutsche Bundesbank, Joachim Nagel, has voiced support for both a euro-pegged central bank digital currency (CBDC) and euro-denominated stablecoins, arguing they could strengthen Europe’s financial sovereignty.

Euro CBDC and Stablecoins for Cross-Border Payments

Speaking in Frankfurt, Nagel said European officials are actively advancing work on a retail CBDC. He emphasized that a wholesale CBDC could enable programmable payments in central bank money for financial institutions, improving efficiency in settlement systems.

Nagel also highlighted the potential benefits of euro backed stablecoins, particularly for low cost cross border payments by individuals and businesses. In his view, such instruments could reduce Europe’s reliance on foreign-dominated payment infrastructures.

Concerns Over Dollar-Pegged Stablecoin Dominance

His comments come as the United States moves forward with legislation establishing a regulatory framework for payment stablecoins, potentially accelerating the global reach of dollar pegged tokens.

Nagel has previously cautioned that a significant expansion of US dollar denominated stablecoins in Europe could weaken monetary policy transmission and undermine regional sovereignty. Debate continues in Washington over broader digital asset regulation, including provisions affecting stablecoin issuance and yield structures.

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