According to @CoinMarketCap, ECB President Christine Lagarde said the central bank has completed technical preparations for a digital euro and now awaits legislative approval. Source: CoinMarketCap tweet dated Dec 19, 2025. The ECB previously entered a preparation phase starting November 2023 to design, test, and select providers for core components of a potential digital euro, indicating operational readiness steps are in place. Source: European Central Bank, press release "ECB to proceed with digital euro preparation phase," Oct 18, 2023. Any issuance requires EU co-legislators to adopt the European Commission’s June 2023 proposal establishing the legal framework and consumer safeguards for a digital euro. Source: European Commission, digital euro legislative proposal and Q&A, June 28, 2023. For traders, a euro CBDC would provide a public, risk-free digital settlement asset that research suggests could reduce reliance on private stablecoins for payments, affecting demand for EUR-denominated tokens. Source: Bank for International Settlements, Annual Economic Report 2023, CBDC chapter. Monitor euro stablecoins and EUR pairs liquidity, particularly EURC issued by Circle and EURT issued by Tether, as MiCA’s e-money token regime and oversight of significant tokens will shape issuance and use in the EU. Source: Circle EURC documentation; Tether EURT information; European Commission MiCA regulation 2023 and EBA/ESMA implementation updates 2024.

According to @ReutersBiz, euro zone ministers will examine how to boost euro-denominated stablecoin issuance at an upcoming meeting, indicating an official review of measures to expand EUR stablecoin supply and usage in the bloc, source: @ReutersBiz reut.rs/434WpHh. For trading strategy, monitor ministerial communiqués and timelines as potential catalysts for exchange support and EUR stablecoin trading pairs in Europe, source: @ReutersBiz reut.rs/434WpHh.

According to @rovercrc, instability in U.S. trade and fiscal policy is weakening the dollar's status as the primary reserve currency, creating a significant growth opportunity for EUR-pegged stablecoins. This trend is amplified by the European Union's pro-crypto MiCA framework, which provides a clear regulatory path for issuers and could give compliant euro stablecoins like EURC an advantage over non-compliant competitors such as Tether. While this macro shift develops, the broader crypto market is experiencing a short-term rally. Major cryptocurrencies, including Bitcoin (BTC), XRP, and Dogecoin (DOGE), rose following comments from U.S. Treasury Secretary Scott Bessent hinting at potential trade deals before the July 9 tariff deadline, as reported by Reuters. Specifically, Bitcoin briefly surpassed $109,000, while XRP gained over 2% and DOGE increased by 3%, signaling positive sentiment driven by geopolitical developments.

According to @Andre_Dragosch, the weakening U.S. dollar, which has fallen to a three-year low against major currencies, is creating a significant opportunity for euro-pegged stablecoins. The analysis suggests that unpredictable U.S. policy has pushed global central bankers to diversify reserves into the euro, gold, and renminbi, a trend expected to spill over into DeFi (source: Reuters, via author). This shift is amplified by the European Union's pro-crypto stance, solidified by the MiCA framework, which provides regulatory clarity and allows issuers to get licensed. This gives MiCA-compliant stablecoins like EURC a competitive advantage over non-compliant ones such as Tether (USDT), which currently dominates nearly 70% of the market (source: @Andre_Dragosch). As major exchanges like Coinbase and OKX secure EU approval and the euro strengthens, the author predicts a substantial increase in the market share of EUR-pegged stablecoins by 2028, potentially threatening the long-held dominance of their USD counterparts.

According to @doctortraderr, Tether's (USDT) market dominance is facing a two-front challenge from regulation and market dynamics. The proposed U.S. 'GENIUS Act' could force Tether to either undergo significant compliance changes to operate in the U.S. or cede market share to compliant competitors like Circle's USDC. The legislation demands strict reserve standards, such as 1:1 backing with cash and Treasuries, and frequent audits, which Tether currently does not meet. Concurrently, a weakening U.S. dollar and the E.U.'s crypto-friendly MiCA framework are creating a favorable environment for EUR-pegged stablecoins. Since Tether is not MiCA-compliant, this could allow alternatives like EURC to gain traction in the European market. The author predicts that these pressures, combined with a broader bearish trend in the crypto market where assets like Bitcoin (BTC) and Ethereum (ETH) are down, could significantly erode USDT's long-standing leadership in the stablecoin space.