European Banks Launch Euro-Backed Stablecoin Project on Ethereum
Thirty-seven European banks from 15 countries have launched the Qivalis project to develop a euro-pegged stablecoin on the public Ethereum network, challenging dollar dominance in digital finance.
Europe is attempting to regain control of the digital payments arena: 37 banks from 15 countries have joined the Qivalis project, which is developing a crypto currency pegged to the euro. The currency is designed to be backed on a one-to-one basis by the euro and tailored to European MiCA regulation. This move comes at a time when the global financial system is becoming an arena of geopolitical competition. In China, the government continues to strengthen major banks: Beijing recently announced an injection of about 54 billion dollars into banks and insurance companies, aiming to strengthen the financial system and support the economy.
The particularly interesting point is the technology: Qivalis plans to issue the currency on the public Ethereum network, rather than on a private blockchain system restricted to banks. The implication is simple: traditional banks are willing to use open blockchain infrastructure to transfer and clear funds, rather than just testing the technology in laboratories. According to ING, stablecoins are already used in the banking world for international transfers, cash management, and the settlement of digital assets, but today this activity relies heavily on the dollar. Europe is trying to create a euro-based alternative.
Simultaneously, Chinese banks have increased purchases of US government bonds after offering higher rates on dollar deposits. While China strengthens the power of banks and the yuan, Europe is trying to build a digital infrastructure that will allow the euro to compete in the future payments world. It is still too early to determine who will win, but one thing is already clear: the battle for the global currency is also moving to the blockchain.
