Joachim Nagel, President of the Deutsche Bundesbank and member of the European Central Bank's Executive Board, has proposed the creation of a euro-backed stablecoin. Speaking at the German-American Chamber of Commerce, Nagel emphasized that such a stablecoin could offer low-cost cross-border payment services and counter the risks of dollarization posed by dollar-stablecoins. Nagel warned that the replacement of domestic currencies with dollar-stablecoins could lead to dollarization, undermining domestic monetary policy and European sovereignty. The European Central Bank is currently exploring distributed ledger technology for non-central-bank money, including tokenized deposits and euro-stablecoins, with plans to introduce a digital euro by 2029. Additionally, the ECB is working on a wholesale CBDC to facilitate programmable transactions for market participants.