EUR-Pegged Stablecoins Expected to Rise Amid U.S. Dollar Decline
Trump's presidency has negatively impacted the dollar, causing it to hit a three-year low against major currencies, with a 5% decline over six months. This has led to a shift in investor focus towards safer assets, including gold and the euro.
- The dollar’s dominance as a reserve currency is waning, potentially benefiting EUR-pegged stablecoins.
- Tether holds nearly 70% of the stablecoin market, while there are currently 12 prominent euro-pegged stablecoins compared to 56 USD counterparts.
- The euro is gaining strength, approaching $1.20, influenced by favorable fiscal policies and increased defense spending.
- The EU is adopting a supportive stance toward crypto with the MiCA framework, providing opportunities for non-compliant USD stablecoins like Tether.
- Major exchanges, including OKX and Coinbase, are gaining EU approval, enhancing the region's crypto landscape.
- The global stablecoin market cap recently surpassed $250 billion despite concerns about financial stability risks from central banks.
Predictions indicate that by 2028, more EUR-pegged stablecoins may emerge, challenging their USD counterparts due to ongoing economic volatility in the U.S. Europe is positioned to capitalize on these developments.