Title: Europe in the global stablecoin debate: risks and opportunities
Authors: Gong Cheng, Stefano Finesi (ESM)
Abstract: This paper examines the rapid expansion of stablecoins and their potential implications for Europe. It analyses stablecoins’ economic functions, use cases, and financial stability risks, with particular attention to cross-border dynamics. The paper situates the regulatory approach of the European Union within an evolving global landscape marked by diverse policy strategies. A comparative analysis of stablecoin regulations highlights the strength of the EU framework and discusses strategic considerations for Europe in the context of an accelerated digital transformation of monetary systems.
Disclaimer:
The views expressed in this discussion paper are those of the authors and do not necessarily represent those of the ESM or ESM policy. No responsibility or liability is accepted by the ESM in relation to the accuracy or completeness of the information, including any data sets, presented in this paper.
Source: European Stability Mechanism | Discussion Paper Series | Volume 2026 no. 27 | May 2026 | 82 Pages
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