Stablecoins, digital assets pegged to fiat currencies or commodities, have so far failed to gain traction among European users. Retail adoption, according to the ECB, does not even reach one percent. Report authors Senne Aerts, Claudia Lambert, and Elisa Reinhold therefore conclude that stablecoins currently pose no significant threat to the EU’s financial system.
Visa estimates that only around 0.5% of stablecoin volume comes from small everyday payments under $250. The rest consists mostly of trading activity within the crypto market.
“Stablecoin usage appears to be primarily motivated by their role within the crypto-asset ecosystem,” the report notes. Widespread adoption for payments, cross-border transfers, or e-commerce has yet to materialise.
The most important use case for stablecoins, according to the ECB, continues to be trading on crypto exchanges. An IMF study shows that although most stablecoin flows are cross-border, there is no evidence of systemic links to remittances or other financial flows that could threaten market stability.
The market is dominated by dollar-based stablecoins – especially USDT and USDC, which together hold around 84% of global market share. The ECB stresses, however, that links between dollar-denominated stablecoins and euro-area financial markets remain limited. Europe’s real economy does not use them, and investment markets are not meaningfully exposed to these flows.
Even if the importance of stablecoins were to grow, the MiCA regulation contains robust tools to mitigate risks. These include a ban on paying interest on stablecoin holdings, designed to prevent them from competing with bank deposits.
The ECB has repeatedly warned in the past about the potential impact of U.S. stablecoins on European payment infrastructure. Executive Board member Piero Cipollone even spoke of a threat to payment sovereignty. The latest report, however, signals a shift toward a more moderate, data-driven assessment.
Risks remain carefully monitored, but dramatic warnings are being replaced by rational arguments: low adoption, limited ties to the real economy, and strict regulation keep the situation under control.
The report also reminds that Europe is preparing its own response to the ongoing digitalisation of finance. Pilot testing of the digital euro is expected to begin in 2027, with the first issuance anticipated around 2029. Stablecoins therefore serve not only as a monitored risk but also as a reference point for designing modern digital infrastructure.
Sources:
https://www.coingecko.com/en/categories/stablecoins
https://www.bis.org/fsi/fsibriefs27.pdf
https://www.ecb.europa.eu/euro/digital_euro/progress/html/ecb.deprp202510.en.html