The banks' step towards the European stablecoin

Among the twists and turns that characterise global economic and financial dynamics, that of stablecoins represents, for various reasons, a historic transition. Technological evolution, of which it is an obvious expression, is just one of the countless factors that must be considered in order to fully understand the opportunities that may arise from the conscious use of an innovative instrument that leverages blockchain technology while maintaining, as a guarantee for consumers and the entire financial system, a stable value compared to a traditional asset such as physical currency.

In a recent interview, Nasdaq CEO Adena Friedman offers new insights. The willingness to expand activities beyond the stock exchange, and even more so the decision of the US electronic stock market to offer tokenized securities, are symptomatic of a change of pace. Legitimising cryptocurrencies within a mainstream dimension, through continuous trading, just as is the case with classic equities, certifies a cultural leap that is no longer represented only by the legitimisation of the existence of crypto-assets, but by their full and functional operability in support of the growth of the financial market and, consequently, of the real economy.

But as is always the case, this turning point requires us to take into account that the road ahead is not immediately visible. But not a leap into the void: the legislator first, and the regulator later, have the onus to look to the future, to face this hairpin bend with the right prudence and the necessary ambition. On the other hand, our duty is this: to regulate the phenomenon, without getting carried away by events or, worse, ignoring the change of pace that the times are handing us. Lucidity, therefore, awareness and courage.

In this context, the recent formation of a consortium of European banks to launch a digital currency denominated in euros is a good example of the courage we are all called upon to nurture. Not for the satisfaction of interests, albeit legitimate, but nonetheless biased. Indeed, the initiative calls for a collective awareness that puts the role of the citizen-consumer at the centre. After all, and this is what counts, we are still driving the car. The decision makes the turn more decipherable, clearing the path of obstacles that previously were and are linked to various fears, always respectable but always weaker in terms of motivation and, even more so, alibis.

The first and most important element of rupture is the nature of this emission. The centrifugal motion crosses a centripetal motion, which from the outside looks towards the centre. It is from the intersection of these two movements that a virtuous encounter between supply and demand matures, perfectly in line with the golden rule of the market, which sees precisely in the mutual interest (in this case of the offerer and the buyer) the attestation of its best functioning.