ECB’s Nagel Touts Euro-Denominated Stablecoins for Payments

Joachim Nagel, Bundesbank president and ECB Governing Council member, endorsed euro-denominated stablecoins as a cost-effective solution for cross-border payments, aligning with the ECB’s digital euro initiative. The remarks, made in February 2026, emphasize stablecoins’ potential to reduce transaction costs while complementing the ECB’s broader push for a central bank digital currency (CBDC) to modernize European payments. Nagel stressed Europe’s need for payment system autonomy, citing transatlantic tensions as a catalyst for reducing reliance on non-EU infrastructure and fostering financial sovereignty. The ECB’s ongoing digital euro project aims to integrate stablecoins into a unified framework, ensuring regulatory oversight while leveraging blockchain efficiency for retail and wholesale transactions. This strategy reflects a dual approach: accelerating CBDC development while harnessing private-sector stablecoins to enhance competitiveness in global digital finance.