Spain’s leading financial institution, BBVA, has joined the Amsterdam-based joint initiative Qivalis, strengthening the European Union banks’ efforts to develop a stablecoin. Managing assets worth approximately $800 billion, BBVA became the twelfth member of this project, which aims to launch a euro-linked digital token this year. The stablecoin is intended to offer a robust alternative to digital dollar currencies within the European financial system. Stablecoins are digital currencies pegged to stable assets like fiat currencies or gold to minimize price volatility, gaining significant attention in recent years due to their relative stability compared to traditional cryptocurrencies. Qivalis represents a collaborative effort among Eurozone financial partners to promote digital currency use in Europe and counter the rising popularity of the U.S. dollar’s digital currencies. These initiatives seek to enhance European financial sovereignty and expand the EU’s presence in the digital economy. Although still in early stages, the project’s successful implementation is expected to increase financial inclusion in Europe, particularly by improving access to digital financial services. However, regulatory challenges and technical complexities must be addressed to ensure transparency, security, and consumer protection. Ultimately, the EU’s endeavor could strengthen the role of digital currencies in the global financial system and introduce a new dimension to international financial competition.
Source: coindesk
