Societe Generale Chairman: Europe needs to embrace stablecoins

Odaily News Lorenzo Bini Smaghi, Chairman of Societe Generale and former member of the European Central Bank's Executive Committee, wrote an article titled "Europe needs to shrug off fear and embrace stablecoins", saying that Europe faces the risk of being marginalized in the digital financial ecosystem. Currently, 99% of the world's stablecoins are issued by the United States and denominated in US dollars, and the euro has almost no presence in emerging fields. Although the EU has launched the world's most comprehensive crypto asset regulatory framework MiCA, requiring stablecoin issuers to hold 30% cash and 70% highly rated sovereign bonds with high liquidity reserves, cultural risk aversion still hinders innovation. European banks regard stablecoins as a threat and lack the motivation to invest. (FT)