Euro Stablecoins Only Make Up 0.15% of the Market — How Europe is Trying to Catch Up

Europe’s Stablecoin Problem: Why the Euro is Falling Behind

Months ago, I argued that the EU’s new crypto law, MiCA, would hurt innovation in Europe and make the US dollar even stronger in the digital economy. Back then, some thought I was exaggerating. But now even the European Central Bank (ECB) is raising the same concerns.

An ECB advisor recently called the euro stablecoin market “dismal” and warned that Europe could be crushed by dollar-backed competitors.

The Numbers Don’t Lie

• Dollar stablecoins: ~$300 billion market cap
• Euro stablecoins: ~$450 million market cap (only 0.15% of the market)

That means for every €1 transacted on blockchain, about €700 is in dollars. This puts Europe’s monetary power at risk in the digital world.

MiCA: A Rulebook That Holds Back Innovation

MiCA was supposed to bring clarity, but its rules make it nearly impossible for euro stablecoins to succeed. The biggest problem is the €200 million daily cap on transactions for “significant” tokens.

For comparison:

• Tether (USDT) does $50+ billion in daily trades
• Euro stablecoins are stuck at €200 million max

This limit means no euro stablecoin can scale for global trade or DeFi.

The EU’s Digital Euro: Privacy Concerns

Instead of supporting private stablecoins, Europe is focusing on a central bank digital euro (CBDC). But unlike cash, a CBDC could track every payment citizens make. This raises big privacy risks and could lead to government overreach.

Other Countries Are Moving Faster

• China is exploring a yuan stablecoin.
• Japan already has laws to allow yen-backed stablecoins.
• The US supports private stablecoins and has put its CBDC plans on hold.

Meanwhile, Europe risks falling behind by limiting private innovation.

A Better Strategy for Europe

To catch up, the EU needs a new approach:

1. Remove the €200M cap so euro stablecoins can scale globally.
2. Fast-track licensing for stablecoin issuers across Europe.
3. Cancel the digital euro project and instead support private euro stablecoins, which protect privacy and can grow faster.

The Bottom Line

Europe has a choice:

• Stick with heavy restrictions and watch the dollar dominate.
• Or empower innovators and make the euro strong in the digital economy.

Right now, the future of money is being built with American digital dollars—and time is running out for Europe to catch up.