Germany‘s Central Bank President Touts Stablecoin Benefits for EU

Joachim Nagel, president of Germany’s central bank, backed both a euro-pegged central bank digital currency and euro-denominated stablecoins in remarks prepared for a speech at the New Year’s Reception of the American Chamber of Commerce in Frankfurt. He said EU officials were "working hard" toward the introduction of a retail CBDC.

Nagel suggested a wholesale CBDC could let financial institutions make programmable payments in central bank money, saying: "Notably, a wholesale CBDC would allow financial institutions to make programmable payments in central bank money." He added that euro-denominated stablecoins "can be used for cross-border payments by individuals and firms at low cost" and could help make Europe more independent in payment systems and solutions.

His comments come after President Donald Trump signed a bill establishing a framework for payment stablecoins, a move that could put dollar-pegged coins in competition with a euro-pegged alternative.

Germany, Frankfurt

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