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Investing.com -- Euro-based stablecoins could threaten USD counterparts by 2028, according to predictions from Fiorenzo Manganiello, founder & managing partner of LIAN Group.
Manganiello points to the dollar’s current weakness, which has fallen to a three-year low due to a combination of delayed rate cuts, a growing budget deficit, and the threat of a US recession.
This decline creates an opportunity for the euro to establish itself as a global reserve currency, with European Central Bank President Christine Lagarde pushing for a stronger euro that could compete with the dollar internationally.
The stablecoin market currently shows a significant imbalance, with 56 USD-pegged coins dominating compared to only 12 prominent euro-based alternatives. Manganiello believes this disparity will diminish in the coming years.
While Manganiello acknowledges that complete de-dollarization could take decades, he expects stablecoin issuers to capitalize on the euro’s momentum. He anticipates more euro-pegged coins will rise in the rankings, challenging the current USD stablecoin dominance.
The potential impact of US policies under Trump could further weaken the dollar, accelerating this shift toward euro-based stablecoins, according to Manganiello’s forecast.
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