Stablecoins promise efficiency, financial inclusion, and lower transaction costs — but they also raise urgent questions about systemic risk. As dollar-denominated stablecoins expand, the EU faces growing concerns over monetary sovereignty, financial stability, and regulatory arbitrage.

Despite the Markets in Crypto-Assets Regulation (MiCAR) marking the world’s first comprehensive crypto framework, critics warn of loopholes that could undermine its effectiveness. Some analysts note that issuers might exploit multi-issuance models — issuing the same token both within and outside the EU — to sidestep supervision. This fungibility between EU-regulated and third-country entities could amplify contagion risks and expose European supervisors to liabilities beyond their jurisdiction, echoing past liquidity crises.

Meanwhile, renewed debate in the United States — particularly following the proactive stance of the Trump administration — has highlighted how dollar-pegged stablecoins might reinforce, rather than challenge, the dollar’s dominance. By deepening dollar use even in informal markets, these tokens could further entrench U.S. monetary influence and heighten vulnerabilities for other central banks.

This online debate will assess the evolving role of stablecoins within the global financial architecture. Key questions include:

• Can regulatory frameworks foster innovation while mitigating risks such as money laundering, consumer harm, and market fragmentation?
• Are MiCAR’s safeguards sufficient to contain global stablecoin risks, or is regulatory fragmentation inevitable?
• Should the fungibility of stablecoins across jurisdictions be curtailed, or is it vital for cross-border efficiency?
• What are the broader geopolitical implications of a dollar-centric stablecoin ecosystem for Europe’s monetary autonomy?

Speakers: 

• Thorsten Beck | Florence School of Banking and Finance - European University Institute  
• Maria Demertzis | The Conference Board, European University Institute
• Richard Portes | London Business School

Chair:

• Nicola Bilotta | Florence School of Banking and Finance - European University Institute