Bundesbank’s Nagel backs euro CBDC and stablecoins for EU
Germany’s central bank president, Joachim Nagel, voiced support for a euro-pegged central bank digital currency (CBDC) and euro-denominated stablecoins to be used in payments, saying they could strengthen the European Union’s autonomy in payment infrastructure and solutions.
In prepared remarks for the New Year’s Reception of the American Chamber of Commerce in Frankfurt on Monday, Nagel said EU authorities are “working hard” toward launching a retail CBDC. He added that a wholesale CBDC could enable financial institutions to execute programmable payments in central bank money, while euro-denominated stablecoins could facilitate low-cost cross-border transactions for individuals and businesses.
Nagel’s comments follow the signing of a U.S. law by President Donald Trump that establishes a regulatory framework for payment stablecoins, potentially accelerating the growth of dollar-pegged tokens under the GENIUS Act. The law is expected to take full effect 18 months after enactment or 120 days after related rulemaking is finalized.
At the Euro50 Group meeting last week, Nagel cautioned that domestic monetary policy could be significantly constrained, and European sovereignty weakened, if U.S. dollar-referenced stablecoins were to command a substantially larger market share than any euro-pegged alternative.
Stablecoin yield provisions debated in pending US bill
In Washington, lawmakers and White House officials have been meeting with representatives from the banking and crypto sectors ahead of a potential U.S. Senate vote on the CLARITY Act. The bill is intended to establish a comprehensive regulatory framework for digital assets, but it has divided industry and banking stakeholders over how to treat stablecoin rewards, a provision that remains unresolved in the draft legislation.
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