ECB is desperate to lauch Euro backed Tether (or Digital Euro) in defense of the US Stablecoins.
ECB Chief Economist Phillip Lane was speaking at a conference in Ireland where he stated the desperation for a Euro Backed Stablecoin. They might call it a CBDC but they did it with "Digital Euro".
Indeed, stablecoins, which are designed to maintain a stable value relative to a specified asset or pool of assets, have already gained a significant foothold in the crypto-asset universe.Their appeal lies in their ease of use and innovative features and in the possibility for fast, low-cost transactions. While stablecoins play a central role in settling transactions in other crypto assets, it is clear that stablecoins are also attracting interest in the facilitating low-cost cross-border transactions in the “traditional” economy and financial system.
Why this talk if ECB doesn't want a Stablecoin of their own?
In essence, issuing the digital euro is not just about adapting to technological change. It is about safeguarding the core principles that underpin our monetary system – stability, trust, and inclusivity – in an era of rapid transformation.
It has to be said that ECB is not only desperate but also scared of the growing imapact of USD backed Stablecoins.