Germany‘s Central Bank President Touts Stablecoin and CBDC Benefits for EU
•February 16, 2026
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Why It Matters
The stance signals a coordinated EU push to build a sovereign digital payments ecosystem, directly challenging growing US dollar‑stablecoin influence and reshaping cross‑border finance.
Key Takeaways
- •Nagel backs euro‑pegged CBDC and stablecoins
- •Retail CBDC aims for EU payment independence
- •Wholesale CBDC enables programmable central bank money
- •US stablecoin law could challenge euro digital assets
- •Euro stablecoins reduce cross‑border transaction costs
Pulse Analysis
Europe is accelerating its digital currency agenda as the Bundesbank’s Joachim Nagel publicly endorsed both a retail central bank digital currency and euro‑denominated stablecoins. The push aligns with the European Commission’s broader strategy to modernise payments, reduce reliance on legacy infrastructures, and give consumers and businesses a low‑cost, instantly settleable alternative to private tokens. By anchoring these assets to the euro, policymakers hope to create a trusted, regulated layer that can coexist with existing banking services while offering the speed and programmability of blockchain technology.
Stablecoins, particularly those pegged to the euro, are positioned as a bridge for cross‑border transactions, delivering near‑instant settlement and minimal fees compared with traditional correspondent banking. Nagel’s emphasis on wholesale CBDC capabilities underscores the potential for programmable payments, enabling complex financial contracts to execute automatically on central‑bank money. At the same time, the United States’ recent passage of the GENIUS/CLARITY Act, which legitimises dollar‑stablecoins, raises competitive concerns. A dominant US‑dollar stablecoin market could siphon liquidity away from European solutions, pressuring the EU to fast‑track its own digital offerings to preserve monetary sovereignty.
The strategic implications extend beyond payment convenience. A robust euro‑stablecoin ecosystem could attract fintech innovation, stimulate investment in European blockchain infrastructure, and provide regulators with clearer oversight mechanisms. As global regulators converge on stablecoin standards, the EU’s proactive stance may set a benchmark for integrating digital assets within a sovereign monetary framework, influencing how banks, corporations, and consumers transact internationally in the coming decade.
Germany‘s central bank president touts stablecoin and CBDC benefits for EU
Joachim Nagel said euro‑pegged stablecoins would offer the bloc more independence from US dollar‑pegged coins soon to be allowed under the GENIUS Act
Joachim Nagel, president of Germany’s central bank, the Deutsche Bundesbank, supported the introduction of a euro‑pegged central bank digital currency (CBDC) and euro‑denominated stablecoins for payments.
In remarks prepared for a speech at the New Year’s Reception of the American Chamber of Commerce in Frankfurt on Monday, Nagel said EU officials were “working hard” toward the introduction of a retail CBDC. Euro‑denominated stablecoins, according to the central bank president, could also contribute to “making Europe more independent in terms of payment systems and solutions.”
“Notably, a wholesale CBDC would allow financial institutions to make programmable payments in central bank money,” said Nagel. “I also see merit in euro‑denominated stablecoins, as they can be used for cross‑border payments by individuals and firms at low cost.”
Nagel’s remarks come months after US President Donald Trump signed a bill into law establishing a framework for payment stablecoins in the country, potentially setting US dollar‑pegged stablecoins on a path to challenge any possible rollout of a euro‑pegged peer. The law is expected to be fully implemented 18 months after it was signed or 120 days after related regulations are finalized.
The German central bank president’s comment on stablecoins did not include risks he mentioned last week at the Euro50 Group meeting. Nagel warned domestic monetary policy “could be severely impaired, not to mention that European sovereignty could be weakened” if US dollar‑denominated stablecoins were to have a significantly larger market share than a euro‑pegged coin.
Stablecoin yield at issue in US bill under consideration
Washington lawmakers and White House officials have been meeting with representatives from the banking and crypto industries ahead of a potential vote on the CLARITY Act in the US Senate. The bill, expected to provide a comprehensive regulatory framework for digital assets, has been dividing many crypto industry and banking leaders due to its approach to stablecoin rewards, which has yet to be finalized in the legislation.
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