Pierre Gramegna, managing director of the European Stability Mechanism, has called for Europe to expedite the development of euro-backed stablecoins to reduce dependency on U.S. dollar-pegged tokens. Gramegna highlighted the importance of enhancing Europe's digital financial sovereignty as the U.S. continues to lead in digital currency initiatives. The European Central Bank is progressing with its digital euro project, aiming for a potential launch by 2029. Additionally, nine major European banks are planning to introduce a MiCA-regulated euro-backed stablecoin by 2026, marking a significant step towards diversifying Europe's digital currency landscape.