Europe's heavy reliance on dollar-pegged stablecoins could erode the continent's economic sovereignty, according to Yat Siu, co-founder and executive chairman of Animoca Brands. Siu argues that without a credible euro-denominated stablecoin alternative, the EU risks becoming what he calls a 'dollar colony' — a region whose digital economy is effectively run on another country's currency.
The warning from Yat Siu
Siu, whose Hong Kong-based firm is a major player in blockchain gaming and venture capital, made the remarks in a recent interview. He didn't mince words: the current landscape, where most stablecoins are backed by the U.S. dollar and governed by American rules, gives Washington outsized control over Europe's crypto and blockchain sectors. That's a problem, Siu said, because stablecoins aren't just trading tools — they're becoming infrastructure for payments, lending, and decentralized finance.
His point is blunt: if Europe doesn't build its own stablecoin, it will keep importing monetary policy from the U.S. That's not just an inconvenience. It's a sovereignty issue.
What a euro stablecoin would need
Siu isn't calling for a ban on dollar-pegged tokens. He's arguing for competition. A euro-denominated stablecoin, he says, would have to be robust — meaning fully reserved, transparent, and compliant with EU regulations like MiCA (Markets in Crypto-Assets). The technology exists. The question is whether European regulators and financial institutions have the will to push one through.
Several projects have tried. Circle's EURC is a euro-pegged stablecoin, but it's tiny compared to USDC or USDT. French bank Société Générale issued a euro stablecoin on Ethereum last year, but adoption remains low. Siu's point is that none of these have achieved the scale or trust needed to challenge the dollar's grip.
Why now matters
The stakes have grown. The European Central Bank is exploring a digital euro, but that's a central bank digital currency — not a private-sector stablecoin. Siu sees room for both. A private euro stablecoin, he argues, could move faster, integrate with DeFi, and keep the continent's crypto economy anchored to its own currency rather than someone else's.
Without it, Europe's blockchain projects will keep pricing things in dollars, settling in dollars, and ultimately taking direction from dollar-based policy. That's the 'dollar colony' scenario — and Siu thinks it's already partly here.
The unresolved question
Who will build that euro stablecoin? A consortium of banks? A tech company? A regulator-led initiative? Siu didn't name names. But the clock is ticking. As stablecoins become mainstream payment rails, the currency they're denominated in will shape which economies control the digital future. Europe has to decide whether it wants to be a tenant or a landlord.
