The European Central Bank taps 36 payment providers to test its digital euro, aiming to counter dominance of dollar-pegged stablecoins in Europe.
The European Central Bank named 36 payment firms, including Revolut, Stripe, Deutsche Bank, and Adyen, to participate in its digital euro pilot. The trial seeks to address the growing influence of dollar-pegged stablecoins in European payments, which currently dominate the $306 billion stablecoin market.
Dollar-denominated tokens like Tether (USDT) and USD Coin (USDC) account for 84% of the stablecoin market, while euro-pegged tokens like Circle’s EURC circulate just $424 million. ECB officials have framed the digital euro as a tool to preserve monetary sovereignty, rejecting private euro stablecoins over deposit risks and regulatory concerns.
The pilot roster includes firms like Revolut, which recently delisted USDT in Europe following Tether’s decision to skip MiCA authorization. The ECB’s announcement focuses on testing and user experience, though officials have previously emphasized the project’s role in protecting Europe’s financial autonomy.