Summary
- The chairman of Société Générale asserted that stablecoins should be actively adopted.
- He stated that currently, 99% of the world’s stablecoins are based on the US dollar, with minimal use of the euro.
- He pointed out that European banks’ risk-averse tendencies are hindering innovation and causing them to undervalue the investment potential.
The chairman of the major French bank Société Générale and former executive board member of the European Central Bank (ECB), Lorenzo Bini Smaghi, argued in a Financial Times (FT) op-ed on the 4th (local time) that "Europe should overcome its fear of stablecoins and actively embrace them."
He expressed concern, stating, "Europe is facing the risk of becoming increasingly marginalized in the digital finance ecosystem," and "currently, 99% of stablecoins worldwide are issued based on the US dollar, while the euro is hardly used in this emerging market."
He continued, "Although Europe has established MiCA—the world’s most comprehensive virtual asset (cryptocurrency) regulatory framework—Europe’s characteristic tendency for excessive risk aversion is stifling innovation," and criticized, "Several European banks still regard stablecoins as a risk factor and see them solely as low-value investment assets."
Chairman Smaghi emphasized, "Europe needs a bolder stablecoin strategy in order not to fall behind in global financial competition."
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
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