Dizziness, fibrillation, euphoria… The cryptocurrency market is pure adrenaline, a roller coaster of prices that rise and fall. But in this golden year for cryptocurrencies, an asset shines whose essence is the opposite: stablecoins and its (almost) iron stability. These assets, which keep their value linked to a traditional currency, such as the dollar or the euro, have become the gateway for financial institutions into the world of cryptocurrencies, where they always move with leaden feet. Enter the stablecoins in euros a niche to be exploited in a market dominated by dollar tokens. And, with prudence, the central banks of the Eurozone give their approval to the entry of the big banks into this business.
Dozens of large European entities will launch stable currencies, linked to the euro, in 2026, following a path opened by the French Société Générale. In Spain the big three have plans: BBVA will do it alone, while Caixabank has joined other European companies, such as ING and Unicredit, to do it through a consortium of entities. Banco Santander explores the development of a stable currency linked to the G7 currencies with international companies such as Citi, Bank of America and Goldman Sachs. “It’s time to decide whether to enter or stay out of something that could quickly evolve into a service with good adoption,” acknowledges a banking source. This market is already worth around 263,000 million euros compared to 156,000 from 2024.
The 99% are dominated by dollar assets issued by private companies such as Tether and Circle, which worries eurozone monetary bodies: they fear they will cause a shift in consumer savings, reducing credit capacity and limiting the effects of monetary policy, or even causing a currency substitution. But the euro alternative, issued by European banks, is an option that does not displease the monetary authorities, who see it as a way to limit the influence of American actors.
Albeit with caution, they welcome these initiatives, which they consider a step forward in the innovation of the financial system. “We are happy that they are developing stablecoins in euros, and even more so if European banks do it”, says a Eurozone authority. “We know them well, we can trust their safety, because we control them”, underlines another central bank. And at the end of September, François Villeroy de Galhau, governor of the Bank of France, had warned that European banks ran the risk of falling behind the United States in the rapid development of the euro. stablecoins. Despite this, doubts about the real stability of these assets lead to extreme caution. “It’s strange that if you pay for something with your current account it’s 1 euro, but with a stable currency let it be 1.01 and with another 0.99… This uniqueness of the currency is what supports confidence in the currency,” a monetary authority points out.
While central banks do not see its potential to become an everyday payment instrument, they believe the story is different in the wholesale sphere and international payments. “Once accomplished, the stablecoins They need to be distributed. Businesses must accept them. In the region, 13 out of 20 states do not have a national payment system”, and could once again turn to providers such as Visa or Mastercard, warns a central bank. “The problem in Europe is not that there is a lack of a currency, but a European system”, it adds. Something the ECB wants to solve with the digital euro, while the bank opts for a continental Bizum that connects the region.
But the digital euro, if it is developed, will see the light in 2029, while there is no date yet for a private solution: in the past the banks had already tried without success, even if this time they claim it is the good one. “They have not been fast and agile enough in payment solutions. Just look at the applications on the market, most of them in the United States,” warns Joaquín Sastre, general manager in Spain of Boerse Stuttgart Digital.
As the long negotiation process continues, the industry does not want to stand idly by.. The entities doubt that the stablecoins become a widespread means of payment. “Europe has a strong currency, immediate payment systems that work well, in Spain we have Bizum… There isn’t much need,” says Francisco Maroto, manager blockchain and BBVA digital assets. But there is unanimity regarding its potential in cross-border payments. “It costs a lot to make the current infrastructure more efficient and stable currencies appear as a solution,” says another bank.
The cross-border payments market processed approximately $200 trillion in 2024 and is expected to surpass $300 trillion by 2032. These transactions involve multiple intermediaries and take two to five days to settle. THE stablecoins They would drastically reduce time: from days to minutes or seconds and in some cases commissions would be reduced by up to 99%, KPMG specifies. Furthermore, there would be no cut-off times and it would operate 24 hours a day, 365 a year. To make an analogy, the stablecoins They’re like emails when the fax dominated.
For banks, the value lies not so much in payments between people, but between companies, with much higher volumes, even if the remittance market is of interest, especially between Europe and the Maghreb, Turkey or Latin America. And they highlight the advantage of traceability the movements in blockchain: “Now, when a transaction is made, it ends up in the black box of the financial system, along with many players in the middle of. You don’t know if the money has arrived until the other person sees it. app“, indicates a financial source.
The fever for stablecoins is no coincidence. The entry into force of the MiCA Regulation and the Genius law was fundamental. “A formidable catalyst, even for American banks. Until that moment they were at a standstill, because they could not operate with cryptocurrencies. Now everyone is moving”, concludes Maroto.
Commercial and tokenized markets
THE stablecoins play an important role in trade, with settlement processes 24 hours a day, seven days a week. And in tokenized markets, where they allow automatic execution of payment and delivery of the asset smart contracts. “Real-time settlement will accelerate the migration towards instant settlement in some asset classes,” they explain to KPMG. European markets, on the other hand, work with the system known as T+2, in which the purchase and sale of shares is settled within 48 hours.
