Euro stablecoin market set to take off, thanks to real-world uses, regulatory clarity — Circle exec

cointelegraph.com:

The future is bright for euro-denominated stablecoins, according to Patrick Hansen, European Union strategy and policy director at Circle. The United States dollar may preserve its first-mover advantage, but euro stablecoins will see increasing real-world use cases emerge to lift them above their current meager market share, Hansen said at EthCC in Paris.

Euro-denominated tokens currently represent 0.3% of the stablecoin market and are worth $300 million. At the same time, the euro occupies 20% of the traditional monetary system. It is in second place to the U.S. dollar in both instances and may stay in that position for a while. Hansen explained that the stablecoin market began with the dollar, and that:

With lower liquidity in the market, euro stablecoin users face higher risks and usage costs.

Related: Circle CEO spells doom scenario for US dollar in warning to Congress

However, “we are currently moving from speculation to utility,” Hansen said of crypto capital markets as a whole. He said that the increasing use of stablecoins in remittances, business-to-business transactions and other cases shows this, and users will want to use stablecoins in their local currency for these purposes. Integrating euro stablecoins into existing European payment systems will also boost their use.

Decentralized finance will go the same way, with real-world uses, such as car loans, being delivered in local currency, Hansen argued. This will lead to more regionalized liquidity pools, he explained.

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