Martin Brunko, founder of Schumann’s finance, says the rise of euro stables is “inevitable” as Europe is sought to digitalize its financial system, while Europe is strongly resistant to digitalization.
Speaking at the ETHCC in Cannes on July 1, Schumann’s Finance founder Martin Brunko predicted that the euro stable coin could reach 1 trillion euros despite a market capitalization of more than 100 billion euros and is now far behind the establishment of the dollar.
Brunchko argues that as traditional finance moves in chains, demand for euro-denominated digital assets is inevitable. Stablecoins already softens over 25 trillion euros a year, more than Visa and MasterCard. Furthermore, financial institutions are increasingly investigating blockchain-based payments. Given that the euro market accounts for about a third of global financial activity, Bruncko believes it is inevitable that a significant portion of its volume will move to euro stables.
According to Bruncko, what makes this shift even more likely is European resistance to dollarization. There is no political desire for MICA regulations to limit the use of non-European silly stub coins in payments and exchange the euro for dollars.
He summed up his case as follows: “If financial services are moving on the on-chain and we believe Europe will not soon turn into the dollar, then it will be one or more euros stub coins, not 100 billion euros, more than 1 trillion euros.”
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According to Bruncko, the euro’s Stablecoin market currently belongs to hundreds of millions of dollars compared to the hundreds of millions of dollars in Stablecoins. However, he believes it is due to a lack of high quality options and real-world use cases.
Schuman Financial, a Bruncko company, aims to change it with its own Euro Stablecoin Europ. The fully-authorized Europe in France is supported by reserves held at Société Générale, one of Europe’s largest banks, and is audited by KPMG. Europ is already listed on major European exchanges. The company is also building its own payment stack, including direct integration with SEPA and Swift.
Regarding the central bank’s digital currency, considered more bureaucratic in Stablecoins, Bruncko expressed his skepticism, arguing that the European government simply isn’t moving as fast as it can be used digital euros, especially crypto-native developers and users actually adopt. “In the next 3-5 years, there is no way to see functional, mainstream CBDC,” he said.
Bruncko’s speech on Euro Stablecoins really captured the atmosphere at Ethcc in Cannes.
Among other speakers, Zain Cheng from Horizen Labs has investigated the future of compliance private stubcoins and focused on how to balance privacy and regulations using encryption solutions. Base’s Tom.base.eth spoke about how local currency Stablecoins and Mini Apps can enable developers to build global commerce products in instant reach, while Bitusd’s Scott Piriou shared insights into the design of BTC-backed decentralized stubcoins.
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