Circle's senior director for EU strategy and policy, Patrick Hansen, stressed that euro stablecoins and the future digital euro from the European Central Bank (ECB) are fundamentally different instruments. According to him, confusing one with the other is "a costly policy mistake that must not be made."
Hansen explained that these are two dissimilar systems. They run on different technologies, have different legal statuses, and address different tasks through different distribution channels.
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How the two instruments differ
The first and key difference is in the infrastructure. Euro stablecoins, or e-money tokens under MiCA rules, are issued on public blockchains such as Ethereum and Solana. The digital euro, which is being prepared under the auspices of the ECB, will operate on a centralized and closed two-tier system under the control of the Eurosystem.
The legal nature also differs. A euro stablecoin works as a bearer instrument: the holder has the right to demand that the private issuer return the money, while the guarantees are served by reserves held separately. The digital euro is a direct liability of the ECB itself, tied to the user's account.
Finally, they have different areas of application. Euro stablecoins are used for settlements with crypto assets, liquidity in decentralized finance (DeFi), cross-border payments, and programmable operations. The digital euro is intended primarily for everyday payments in stores, transfers between people, and settlements with the state.
Why it is important not to confuse them
First, the structure and access to these instruments. Euro stablecoins are accessible through crypto wallets such as MetaMask, Phantom, and Ledger, as well as through neobanks and brokers. The digital euro will be distributed through familiar banking and payment apps with the participation of licensed intermediaries.
Source: BeInCrypto
