The Rise of Euro-Based Stablecoins: A Threat to USD Dominance

The US dollar's status as a reserve currency has been challenged by President Trump's unpredictable policies, leading to a decline in its value against other major currencies. This shift has created an opportunity for other currencies, particularly the euro, to gain prominence. In the cryptocurrency world, the dominance of USD-pegged stablecoins may be threatened by the growing popularity of euro-based stablecoins. With the US economy and markets experiencing volatility, investors are seeking safe-haven assets, and the euro has emerged as a viable alternative. Central bankers worldwide are now considering the euro, along with gold and the renminbi, as a reserve asset. The stablecoin market, currently dominated by USD, may see a shift towards euro-pegged coins as the dollar's value continues to decline. The EU's increasing openness to cryptocurrency, coupled with the implementation of the MiCA framework, has created a favorable environment for euro-based stablecoins to flourish. As the euro gains strength, it is likely that EUR-pegged stablecoins will become more competitive, potentially threatening the dominance of USD-pegged stablecoins. By 2028, it is predicted that euro-based stablecoins will emerge as a significant force in the market, marking a new era in the global currency landscape.