Who’s afraid of stablecoins?

[LUXEMBOURG] US President Donald Trump’s embrace of so-called stablecoins as a means of projecting America’s financial power and preserving the US dollar’s global dominance has spurred calls for a “strategic response” by the European Union.

If Europe does not stake out its position in this techno-financial revolution, the argument goes, its monetary sovereignty and financial stability will deteriorate. But the warnings are as unwarranted as they are ominous.

The main catalyst of Europe’s stablecoin anxiety is the Trump administration’s Guiding and Establishing National Innovation for US Stablecoins (Genius) Act, which aims to promote US dollar-backed stablecoins by implementing a comprehensive regulatory framework for them.