Interview
Stablecoins as a European payment rail: opportunity or hype?
Stablecoins are increasingly mentioned as an alternative to slow cross-border payments. We spoke with Ines Bergman, payments product manager at a Dutch fintech company, about what's accurate in that story.
In conversation with
Ines Bergman — Productmanager Betalingen, een Nederlandse fintechpartij
What do your customers already use stablecoins for?
Bergman: 'Mainly for cross-border business payments outside the eurozone, where traditional bank transfers can take days and are relatively expensive. A euro stablecoin can settle such a payment within minutes, at lower cost than a classic correspondent-bank route.'
'Within the eurozone itself the gain is smaller, since instant payments via SEPA already work well. There we mainly see stablecoins used in combination with on-chain services, such as settlement between platforms.'
What's the biggest obstacle to broader adoption?
Bergman: 'Trust in the issuer. Customers and regulators want to know that every euro stablecoin issued is fully backed by reserves that are readily accessible. MiCA now sets requirements for that, which helps, but it takes time for users to properly assess the difference between issuers.'
'There's also still reluctance among traditional banks to integrate stablecoin rails into their own systems. That slows scaling toward the general public.'
- Full and accessible reserve backing
- Supervision under MiCA
- Integration with existing banking infrastructure
- Ease of use for end customers
How does this relate to the digital euro?
Bergman: 'The ECB's digital euro is a different kind of instrument: it's public money, issued by the central bank, aimed at retail payments within the eurozone. Stablecoins are private money, issued by companies, and mainly play a role in cross-border and business transactions.'
'I don't think one replaces the other. They rather complement each other: the digital euro for everyday payments close to home, stablecoins for international and on-chain uses.'
What do you expect for the coming years?
Bergman: 'I expect more European banks and fintechs to issue their own euro stablecoins or partner with existing issuers, now that the regulatory framework is clearer. That competition will further push down the cost of cross-border payments.'
'At the same time I expect regulators to keep a close eye on concentration risk, especially if one or two stablecoins come to represent a large share of payment flows.'
Risks for users
Even a well-regulated stablecoin isn't a risk-free savings product: the peg to the euro is a promise from the issuer, not a state guarantee. If there's doubt about an issuer's backing, caution is warranted.
This interview describes market developments and is not investment or payment advice for individual readers.
Ofte stilte spørsmål
Are stablecoins the same as the digital euro?
No. Stablecoins are private money issued by companies, while the digital euro is public money the ECB is considering issuing.
Why are stablecoins useful for cross-border payments?
Because outside the eurozone they can settle faster and often cheaper than traditional bank routes via correspondent banks.
Is a euro stablecoin always fully backed?
Under MiCA stricter reserve requirements apply, but users should still check how a specific issuer holds its reserves.
About the author
Dani volgt stablecoins, betaalrails en de brug tussen euro's en on-chain geld. Hij test betaaloplossingen zelf en meet kosten en snelheid.