European Central Bank council member Francois Villeroy de Galhau has cautioned that Europe may fall behind the U.S. in the burgeoning stablecoin sector, potentially threatening the continent's financial sovereignty. In an interview, Villeroy noted that while Europe is ahead in regulatory frameworks and public digital currency initiatives, it is trailing in the private money space. He pointed out that the stablecoin market, currently valued at approximately $250 billion, could expand to trillions, necessitating European banks to meet the demand for private tokenized money. Villeroy expressed concerns over the dominance of non-European-issued private dollar stablecoins, which could evolve into quasi-currencies. This warning comes as nine European banks are reportedly planning to launch a MiCA-compliant euro stablecoin, aiming to strengthen Europe's position in the stablecoin market.