EMBank chairman warns euro stablecoins need more than regulation

EMBank Supervisory Board Chairman Ekmel Çilingir says euro stablecoins could shape Europe’s digital payments future and affect the euro’s role in programmable finance. His new article argues that EU policy must focus on adoption, liquidity and interoperability, not just compliance.

Why it matters: - Euro stablecoins could determine whether the euro becomes a native currency in digital finance or remains dependent on dollar-denominated infrastructure. - The issue reaches beyond crypto trading and into cross-border payments, treasury operations, tokenised assets and the broader operational relevance of the euro. - Europe’s response could influence monetary sovereignty in digital markets as stablecoin use expands.

What happened: - Ekmel Çilingir, Chairman of the Supervisory Board at European Merchant Bank (EMBank), published a new article titled “Euro Stablecoins and the EU’s Monetary Sovereignty.” - The article examines the growth of euro-denominated stablecoins, the dominance of US dollar stablecoins and policy choices facing European institutions. - Çilingir argues that the debate is about Europe’s future digital financial infrastructure, not only crypto markets.

The details: - The global stablecoin market reached approximately USD 300 billion by mid-2026, and more than 99% of supply was denominated in US dollars, according to the article. - Euro stablecoins represented well under EUR 1 billion, showing how far behind euro-linked assets remain. - Stablecoins were first built to reduce crypto-market volatility by tying digital tokens to fiat currencies. - Their use has expanded into cross-border payments, digital commerce, treasury operations, decentralised finance and tokenised asset settlement. - Çilingir says stablecoin adoption can reinforce the currency already embedded in wallets, exchanges, payment apps, smart contracts and tokenised markets. - The article says that once businesses and developers build around the most liquid currency, displacing that position becomes harder. - Çilingir identifies several commercial uses for euro stablecoins, including faster cross-border settlement, continuous payment availability, automated supplier payments and programmable treasury processes. - The article also points to euro-denominated settlement for tokenised bonds, funds and other financial instruments. - “Europe does not merely need another digital representation of the euro,” Çilingir writes. “It needs a usable, liquid, interoperable euro layer that businesses can integrate into real commercial activity.” - The article reviews the EU’s Markets in Crypto Assets Regulation, known as MiCA, and describes it as important for reserve management, redemption, disclosure and supervision. - Çilingir argues that legal certainty alone will not produce broad adoption. - He says a stablecoin can be fully compliant and still fail commercially if it lacks liquidity, distribution, exchange access, banking relationships and practical use cases. - Çilingir rejects the idea that euro stablecoins and a proposed digital euro must compete directly. - A digital euro would be central bank money, while regulated stablecoins could operate more flexibly across commercial platforms, payment apps and tokenised markets. - “The future of money is likely to be multi-layered,” Çilingir writes, and he says central bank money, commercial bank deposits, tokenised deposits and stablecoins may coexist. - The article concludes that Europe’s outcome will depend on adoption, interoperability and international use. - “Regulation is necessary, but it is not a strategy,” Çilingir writes. “A strategy creates adoption, incentives, infrastructure and global relevance.” - EMBank is headquartered in Vilnius, Lithuania, and focuses on digital banking solutions for fintechs and Lithuanian businesses. - Çilingir is an internationally recognised banking and fintech executive with experience in payments, digital banking, financial innovation and cross-border financial services.

Between the lines: - The article frames euro stablecoins as a strategic infrastructure question, not a niche product discussion. - Çilingir’s argument suggests the EU could lose practical influence over digital payments even if its rules are robust. - The emphasis on liquidity and distribution signals that regulation may be necessary but insufficient without market adoption.

What’s next: - The article points toward continued debate over how Europe should support euro stablecoins alongside the digital euro. - The likely battleground is adoption, where interoperability, banking access and real-world payment use will matter as much as legal compliance. - Europe’s digital currency strategy may increasingly hinge on whether euro-based private and public money can work together in the same ecosystem.

The bottom line: - Çilingir’s message is simple: if Europe wants the euro to matter in digital finance, it must build usable infrastructure, not just rules.