TLDR:
- Bundesbank President Nagel endorsed euro stablecoins as low-cost tools for cross-border payments across Europe.
- The digital euro will become the first pan-European retail payment solution built on solely European infrastructure.
- A wholesale CBDC is in development to enable programmable central bank money payments for financial institutions.
- Nagel warned Europe can no longer rely on transatlantic cooperation and rules-based order as it once did.
Germany’s Bundesbank President Joachim Nagel has publicly endorsed euro-denominated stablecoins as a viable tool for cross-border payments.
Speaking at the American Chamber of Commerce in Germany on February 16, 2026, in Frankfurt, Nagel outlined a broader vision for European financial sovereignty.
His remarks covered payment system independence, regulatory reform, and capital market integration. The endorsement marks a notable shift in tone from a senior European central banker on private digital assets.
Nagel Makes the Case for Euro-Denominated Stablecoins
Euro stablecoins, according to Nagel, can facilitate cross-border payments for individuals and firms at lower cost. This positions them as practical instruments rather than speculative assets.
The focus is specifically on euro-denominated instruments that reinforce European monetary control. By framing stablecoins within a sovereignty narrative, Nagel separates them from broader crypto market concerns.
The endorsement did not come in isolation. Nagel stated that the Eurosystem is actively working toward a retail central bank digital currency.
He described it as “the first pan-European retail digital payment solution, based solely on European infrastructures.” Euro stablecoins, in his view, serve a complementary role alongside this public infrastructure.
Work on a wholesale CBDC is also advancing in parallel. Nagel noted that “a wholesale CBDC would allow financial institutions to make programmable payments in central bank money.”
Together, the retail CBDC, wholesale CBDC, and euro stablecoins form a layered European digital payments ecosystem. Each instrument serves a distinct purpose within that framework.
The core argument is that Europe must reduce its dependence on foreign-controlled payment networks. Currently, major digital payment solutions used across the EU rely heavily on US-based providers.
Euro stablecoins offer a market-driven complement to public infrastructure in closing that gap. Nagel’s endorsement lends institutional credibility to that path forward.
Broader European Reforms Back the Digital Payments Push
The stablecoin endorsement fits within a wider agenda to strengthen the international role of the euro. Nagel outlined three reform priorities: regulatory simplification, the Savings and Investments Union, and euro payment sovereignty.
He described this as “an ambitious programme” that he regards as “essential to successfully overcoming the current challenges.” Each priority connects to the others in building a more resilient European economy.
Regulatory complexity remains a known obstacle to growth and investment across Europe. Nagel referenced reports by Enrico Letta and Mario Draghi calling for streamlined EU rules.
He stressed that “it is not their mere existence that causes problems” but rather “their extraordinary complexity and rigidity.” An ECB High-Level Task Force on simplifying financial regulation is active, with Nagel serving as a member.
Capital market fragmentation across member states continues to limit private investment. Nagel pointed out that “a high degree of economic fragmentation still remains” despite over 30 years of the single market.
The Savings and Investments Union was presented as the key mechanism to address this gap. High European savings, he argued, “could be better channelled into fostering innovation, productivity and competitiveness.”
Transatlantic trade remains substantial, with the EU and US together representing 44% of global GDP. However, Europe is clearly preparing for a world where that partnership carries more uncertainty.
Nagel was direct in saying, “we cannot rely on transatlantic cooperation and the rules-based international order to the same extent as before.”
His support for euro stablecoins reflects that broader repositioning of European financial policy toward greater independence.
