12 European Banks Form Consortium to Launch On-chain Euro and Counter Digital Dollarization

A consortium of 12 European banks has launched a strategic initiative to bring the euro onto blockchain networks. This move aims to challenge the current dominance of US dollar-pegged stablecoins within the digital asset and DeFi ecosystems. According to reports from CoinDesk, the initiative is designed to protect the euro from "digital dollarization" in global markets. The consortium's CEO highlighted that the race is on to enhance the euro's competitiveness in digital settlements and on-chain transactions. While this is a private-sector effort rather than a central bank digital currency, it represents a significant step in strengthening the euro's digital infrastructure. The project is expected to increase euro liquidity in the growing blockchain sector and provide a regulated alternative to existing stablecoins.