According to PANews, Lorenzo Bini Smaghi, Chairman of Société Générale and former member of the European Central Bank's Executive Board, has expressed concerns about Europe's position in the digital finance ecosystem. In an article published by the Financial Times, Smaghi argues that Europe risks being marginalized as 99% of stablecoins are issued by the United States and denominated in U.S. dollars, leaving the euro with little presence in emerging financial sectors.

Despite the European Union's introduction of the comprehensive MiCA regulatory framework for crypto assets, which mandates stablecoin issuers to hold reserves consisting of 30% cash and 70% high-rated sovereign bonds, cultural risk aversion continues to hinder innovation. European banks perceive stablecoins as a threat and lack motivation to invest in them.
Smaghi identifies three major misconceptions: underestimating the strategic value of tokenization technology, believing that Europe can isolate itself from the global impact of stablecoins, and failing to recognize the threat to monetary sovereignty. He emphasizes that the European Central Bank has the institutional advantage to lead stablecoin regulation and that now is a crucial time to change the perception of 'over-regulation.' If Europe hesitates further, it risks losing its influence in shaping the future global financial landscape.