Circle’s New Euro Stablecoin: Issued from the US and Used Outside the EU?


Figure 1: Reflecting on the decision to launch a euro stablecoin and specifying its setup. For simplicity, this figure considers MiCA, even though it is not yet in place.

Reasons why there have not been significant euro stablecoins so far

Negative interest rates make issuing a fiat-backed euro stablecoin unprofitable

High regulatory hurdles according to MiCA regulation

Reducing volatility of crypto assets through stablecoins

Demand for euro stablecoins (as one version of the digital euro besides CBDCs)

Setup of Circle’s euro stablecoin

Issuance from the US

Ethereum as technical platform

E-Money license in the UK

But for what would it be needed?

Non-EU financial centers

Listing on worldwide crypto exchanges

B2B payments within and across multinational corporations

Choosing European or US solutions — but one technical interface



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Jonas Gross

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