The early dominance of the dollar in the stablecoin market gives the United States an advantage that could, in the long run, lead to higher borrowing costs for Europe, reduce the autonomy of the European Central Bank (ECB), and increase geopolitical dependence on the United States. The information was announced in a blog post published on Monday on the European Central Bank (ECB) website.

Stablecoins, these cryptoassets pegged to a currency such as the dollar, have grown in popularity in recent years, gaining new momentum earlier this month when US President Donald Trump signed into law a law to establish a regulatory framework for & agrave; consolidating the status of the dollar as the global reserve currency. Jürgen Schaaf, advisor to the ECB said that “such dominance of the US dollar would provide the United States with strategic and economic advantages, allowing them to finance their debt at a lower cost while exerting influence on a global scale

Stablecoins backed by the dollar, issued in particular by Tether and Circle, currently dominate the global market, while the share of stablecoins denominated in euros remains marginal, with a market capitalization of less than 350 million euros, says the note.