Europe Eyes Euro-Backed Stablecoin as Cryptocurrency Market Grows

The introduction of a euro-backed stablecoin could be a significant step in Europe's bid to become a major player in the cryptocurrency market.

A consortium of European banks has formed a company called Qivalis to develop an interoperable stablecoin that can be used by each member bank's customers. The group currently consists of 37 banks, including BBVA and BNP Paribas, and is planning to release a euro-denominated stablecoin.

Experts warn that the EU's current reliance on dollar-backed stablecoins could have negative consequences for its economy. With most stablecoins being denominated in US dollars, the EU may find it difficult to control inflation if these coins become widely used.