The advantages of the European approach to blockchain

“Money is the most universal and most efficient form of trust ever created.”

With this statement, historian Yuval Noah Harari reminds us that money, in whatever form it takes, is nothing more than a collective agreement based on trust. Blockchain technology, which underpins stablecoins, has introduced an epoch‑making shift by decentralising this concept: every transaction is recorded simultaneously across millions of nodes, making manipulation impossible. However, while blockchain guarantees trust through technology, the role of banks and financial institutions remains central. It is precisely at this point that Europe can build a strategic advantage over the United States.

In his contribution to Il Sole 24 Ore on 30 September, Federico Freni, Undersecretary at the Ministry of Economy, clearly stated that the true innovation associated with stablecoins does not lie simply in their digital nature, but in the possibility of developing—in Europe—a model that combines technological efficiency with the solidity of the regulatory and banking system. In the United States, stablecoins strengthen the dollar’s role as the international reserve currency and are backed by Treasury bonds. Europe, by contrast, can propose a different model: not a copy of the American one, but an infrastructure that combines speed and cost efficiency with institutional trust, thanks to clear rules and supervised issuers.

This perspective represents a deeper form of innovation. It is not merely about adopting blockchain technology, but about integrating it into a system that already has supervisory tools, transparency rules and the ability to intervene as a lender of last resort. In this framework, blockchain decentralises trust, but it is the European regulatory framework that transforms it into instruments that are truly secure and credible for citizens, businesses and investors—enhancing the intrinsic trust features of the European system.

Three key advantages of this approach

There are three main advantages to this approach:

1. Strong and reliable rules: a regulatory framework that safeguards stability, protection and accountability.
2. The central role of banks: institutions recognised and trusted by citizens, capable of issuing digital money with guarantees of oversight and transparency.
3. Systemic stability: the ability to combine efficiency and resilience, reducing the risk of confidence crises typical of purely private instruments.

Beyond payments, blockchain technology also opens up important scenarios in the public sector. One particularly promising application is the tokenisation of government bonds. This approach could deliver significant benefits, including reduced issuance and management costs, greater efficiency in distribution and the possibility of offering savers more transparent and flexible instruments—without additional costs for the State.

A crucial issue, increasingly central to the international debate, concerns governance. The real challenge for Europe is not only to introduce stablecoins, but to do so in a coordinated way, avoiding fragmentation into too many competing digital currencies. To achieve relevance and scalability, European stablecoins must be conceived as a system‑level initiative, entrusted to central players with infrastructure, technology and credibility. In this context, a natural role can be played by European domestic payment schemes, which can guarantee secure, regulated and interoperable issuance while acting as catalysts for a truly European payments network.

Ignoring this transformation would mean losing competitiveness. On the contrary, Europe today has the opportunity to leverage its regulatory strength to create stablecoins that genuinely combine the best of both worlds: the efficiency of blockchain and the trust of the banking system. This is not just a new payment instrument, but a strategic choice—positioning Europe as a key player in global digital finance, capable of setting rules, defining standards and protecting citizens and businesses.

The global village is already a reality. Now it is up to Europe to lead it by charting a European path to digital currencies: a path that brings together technology, trust and shared rules.

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