Can Europe Catch Up to the US in the Stablecoin Race? Bitget CEO Weighs In

US stablecoins dominate 99% of the world market. China is pushing forward with the e-CNY. Europe, backed by MiCA and the first BaFin-regulated euro stablecoin EURAU, needs to shut the hole. But can it transfer quick sufficient?

BeInCrypto spoke with Gracy Chen, CEO of Bitget, about Europe’s strengths, its regulatory challenges, and whether or not the EU can nonetheless play a number one function in digital finance.

Europe vs. US: Two Competing Models

BeInCrypto: How do you assess Europe’s place in opposition to the US and Asia?

Gracy Chen: Europe is anchored in MiCA, which gives a unified authorized framework however calls for a high compliance burden. Issuers should keep full reserves, maintain important capital, and procure an EMI license. This protects customers however raises entry limitations and slows progress.

By distinction, she stated, the US GENIUS Act takes a lighter, innovation-first method. It has allowed non-public issuers like Circle and Tether to scale quickly, integrating USDC and USDT into Visa and Mastercard networks.

Asia, in the meantime, stays targeted on CBDCs, with non-public stablecoins nonetheless taking part in a restricted function.

Is MiCA Enough to Drive Innovation?

BeInCrypto: Does MiCA foster innovation, or does Europe want extra flexibility?

Chen: MiCA is a robust basis, however Europe wants three changes: quicker authorization for CASPs and issuers, stronger help for multi-bank reserve fashions like EURAU, and harmonized implementation throughout all member states.

Without these, Europe dangers regulatory fragmentation and slower adoption.

EURAU and European Sovereignty

BeInCrypto: What does EURAU’s launch imply for Europe?

Chen: EURAU is a pivotal step. As Germany’s first BaFin-regulated euro-backed crypto asset, it gives a compliant various to USD stablecoins and strengthens Europe’s financial sovereignty. Regulatory readability, she added, is the set off for institutional adoption and cross-border fee use circumstances.

What Europe Must Do to Stay Competitive

BeInCrypto: What are the most pressing steps for the EU?

Chen: Europe should shift from coverage readability to operational readiness. The precedence is accelerating MiCA-compliant euro stablecoins with native SEPA Instant or TIPS integration, enabling quick, low-cost ramps. 

Europe additionally wants Level-2 requirements, EU-wide passporting, and specific guidelines for yield-bearing merchandise similar to tokenized T-bills — an space the place the EU can differentiate from the US.

Infrastructure issues too. Europe wants unified fiat ramps, service provider acceptance applications, interoperability rails, and a typical supervisory playbook.

A devoted stablecoin sandbox and developer toolkits might entice new issuers and shut the innovation hole.

Building Trust: Compliance and Technology

BeInCrypto: What builds belief in European stablecoins?

Chen: Transparency and audited reserves. MiCA’s quarterly reporting necessities assist forestall the opacity that led to TerraUSD’s collapse. 

Mandatory AML/KYC integration and safe, audited sensible contracts present further assurance for establishments and retail customers.

Will Europe Become a Leading Stablecoin Player?

BeInCrypto: Can Europe compete in the subsequent 3–5 years?

Chen: Europe can grow to be a decent participant, however it’s unlikely to overtake the US, which already controls nearly the whole market by means of mature private-sector ecosystems. Europe’s benefit lies in its regulatory readability — however it should speed up innovation to flip that framework into actual adoption.

Regulation Gives Europe a Head Start — Innovation Will Decide the Rest

Europe has what different areas lack: an entire, unified regulatory framework. But guidelines alone gained’t shut a 99% market hole.

As Gracy Chen warns, the EU should mix MiCA with pace, infrastructure, and incentives. Whether that’s sufficient to problem US dominance stays Europe’s defining take a look at — and the reply will come rapidly.

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