European Central Bank Chief Economist: A digital euro is needed to combat stablecoins and large non-European tech companies.

According to ChainCatcher news, as reported by CoinDesk, Philip Lane, the Chief Economist of the European Central Bank (ECB), warned that US dollar stablecoins and the electronic payment systems of American tech giants are capturing a larger share of the European financial system, and Europe needs to launch a digital euro to meet the challenge. He pointed out that payment methods such as Apple Pay, Google Pay, and PayPal increase Europe's reliance on external systems, bringing economic pressure and risks of external coercion. The digital euro will provide a secure and widely accepted payment option under the European regulatory framework, reducing dependence on foreign payment systems and limiting the influence of dollar stablecoins in the euro area. Currently, 99% of the stablecoin market consists of tokens pegged to the dollar, which could lead to a gradual dominance of the dollar in the euro area's payment system. Like other major economies, the ECB is studying Central Bank Digital Currency (CBDC) to respond to the competition from stablecoins and technology company payment systems. Lane believes that the Eurozone payment system is fragmented due to differing national standards, and the digital euro could become a key tool in addressing the fragmentation of retail payments.