European Banks Team Up to Create Euro Digital Currency

Europe's biggest banks are worried that the US dollar is taking over the digital money world, and they're fighting back with their own euro version.

What's happening: Twelve major European banks, including ING, UniCredit, and BBVA, have joined forces to create a digital version of the euro called a "stablecoin" (a digital currency that keeps a steady value by being backed by real money). Their project is called Qivalis.

Why it matters: Right now, most digital money transactions use US dollars. In fact, 99.8% of all stablecoin transactions are in dollars, while the euro makes up only 0.2%. This is a huge problem because in traditional banking, the euro represents about 20-25% of global activity.

"If we don't have a euro onchain with depth of liquidity, then the only alternative is the U.S. dollar," said Jan-Oliver Sell, CEO of Qivalis. "That's a real risk to Europe's financial and digital sovereignty."

The numbers tell the story: • Current stablecoin market: $314 billion • Expected growth: Could reach $800 billion to $1.15 trillion in 5 years • Euro's share in traditional finance: 20-25% • Euro's share in digital finance: 0.2%

The banks plan to launch their euro stablecoin in the second half of this year, pending regulatory approval. They see it as complementary to the European Central Bank's planned digital euro, not as competition.

The bottom line: European banks fear that without their own strong digital currency, Europe could lose control over its financial future as more money moves to blockchain systems (secure digital ledgers that record transactions).

This is an AI-generated summary. Read the original article at: https://www.coindesk.com/business/2026/03/31/europe-faces-digital-dollarization-without-a-euro-stablecoin-of-its-own-warns-qivalis-ceo