A consortium of leading European banks has rallied behind Qivalis, a stablecoin initiative seeking to bolster the euro’s role in the digital era. Jan-Oliver Sell, Qivalis CEO, warns that unless the euro swiftly adapts to new digital financial technologies, Europe risks relinquishing control of its financial future to the US dollar. In a world where blockchain-based infrastructure is steadily becoming foundational in global finance, Sell highlights the growing influence of dollar-backed stablecoins like Tether and USDC.
The mission behind Qivalis and banks’ involvement
Qivalis is designed to address euro’s lagging digital presence, offering a blockchain-ready euro alternative that can challenge dollar dominance. Backed by a consortium that includes ING, UniCredit, BBVA, and nine other financial heavyweights, Qivalis seeks to fill a clear gap in Europe’s financial ecosystem. The project’s primary goal, at launch, is to issue a euro stablecoin fully compliant with the Markets in Crypto-Assets Regulation (MiCA), setting a transparency and regulatory benchmark in the rapidly evolving stablecoin landscape.
Qivalis awaits final regulatory approval, with its licensing process in the last stages with the Dutch Central Bank. If all goes as planned, a market debut in the latter half of the year seems feasible. Sell emphasizes that Qivalis is not merely a euro-denominated digital token, but rather aims to serve as a critical infrastructure bridge between blockchain and traditional European finance.
Although the euro remains the world’s second-largest reserve currency, its adoption for blockchain transactions remains strikingly low. Sell points out a major disparity, explaining, “Only 0.2 percent of blockchain transactions use the euro, highlighting a significant gap.”
ECB’s digital euro plans and the stablecoin race
While the European Central Bank (ECB) continues to develop its own central bank digital currency (CBDC), known as the digital euro, its rollout is not expected before 2029 at the earliest. Qivalis, meanwhile, aims to launch a regulated euro stablecoin available for use on public blockchains, offering a private sector-driven solution to the digital currency race.
“We don’t view this as a competition, but as a complementary step that strengthens Europe’s financial infrastructure,” Sell explained, describing the relationship between Qivalis and the forthcoming digital euro.
According to Qivalis, previous euro stablecoins failed to reach wide adoption due to fragmented efforts and limited liquidity. Sell argues that solo initiatives by individual banks struggled to gain traction, whereas coordination among major institutions can create broad usage and foster deeper liquidity networks.
The global stablecoin market has witnessed rapid expansion in recent years. Analysts at Jeffries forecast that the sector could grow to between $800 billion and $1.15 trillion within the next five years. Qivalis aims to align with stringent European regulations, promising a euro token of robust liquidity amid this transformation.
Sell further notes that euro-denominated options could help minimize currency risk for European businesses and consumers, who currently face exchange rate volatility when executing dollar-based transactions.
Ultimately, Qivalis positions itself not only as a technological advancement but also as a strategic step toward safeguarding Europe’s digital sovereignty and ensuring the euro maintains its relevance at the forefront of financial innovation.
