Lucrezia Reichlin lays out a proposal for creating a reserve-backed euro stablecoin that compensates savers.
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Jul 10, 2026
Lucrezia Reichlin
Both the US and Europe are moving to create digital money, but neither has the right idea about how to do it. The key is to allow “narrow banks,” which issue money but not credit, to keep their reserves in central banks and provide capped interest payments to coin holders.
Europe has high hopes for the digital euro that is in development. Cash has long served as the ultimate anchor for commercial…
Could central banks become obsolete? This is one of the questions being asked across Europe as digital payments take over from…
Stablecoins verstärken die Dollar-Dominanz bei digitalen Zahlungen. Warum die „Geldschicht“ der digitalen Wirtschaft nicht dem…
ECB Executive Board member Isabel Schnabel compared stablecoins to money market funds, warning of run risks, fire sales and…
Isabel Schnabel, an ECB board member, said Monday that central banks should respond to stablecoin risks with strong regulation…
Europe and China favour state-led digital money; the U.S. backs private competition. The divide may decide whether dollars or…
