Euro Coin: the underbelly of a threat to European sovereignty
The American company Circle, which already manages the 2nd largest dollar stablecoin (USDC), is preparing to launch a euro stablecoin that could quickly become the largest on the market. A real headache for the European Union.
👉 The news. US company Circle, already issuer of the USDC, will launch a euro stablecoin on 30 June.
👉 The context. Rising rates in Europe and the end of debates in Parliament around the future regulation of cryptos (MiCA) offers Circle a perfect window of opportunity.
👉Why it matters.What could quickly become the largest euro stablecoin will be controlled from the US and could escape Brussels.
Like a thunderclap. Last Thursday, the American giant Circle announced the launch of a euro stablecoin, the Euro Coin. The news prompted strong reactions from some leading figures in the European crypto ecosystem. "So the US regulator will supervise one of the only... euro stablecoins! How short-sighted of our leaders!" reacted former French MP Pierre Person. "Great, so now the Americans will be issuing our digital euro. Shame on our European leaders!"
For his part, Julien Bouteloup, a leading crypto entrepreneur (Curve, StakeDAO), fulminated.
If the reactions have been so strong, it's because the subject is a sensitive one. Stablecoins have become an essential link in crypto. Over the past 12 months, $6213 billion worth of stablecoins have been traded, according to analysis company CoinMetrics. The development of a euro stablecoin is vital, as the dollar accounts for 99% of stablecoin trading. Euro stablecoins backed by French players do exist, such as Lugh (backed by the Casino Group and Société Générale), jEUR (Jarvis Network) and agEUR (Angle Protocol), but these are still not very liquid and are relatively confidential.