German Industry in Times of Bitcoins, Stablecoins and the Digital Euro
An overview of the opportunities, tools and action needed
Publication
https://english.bdi.eu/article/news/german-industry-in-times-of-bitcoins-stablecoins-and-the-digital-euro
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Foreword
A stable monetary system forms the backbone of economic activity. Market participants are dependent on secure payment options which makes the monetary system a service provider for the economy. As the economy changes, the monetary system also needs to evolve alongside it. The digital development of the monetary system is currently in full swing, involving both public and private initiatives. We have been closely monitoring these initiatives for several years and, in some cases, actively helping to shape them.
Industrial applications are often not part of the public and political discourse on the digitalisation of payment methods and their infrastructure. However, self-billing supply chains with paying machines, vehicles and containers are no longer a distant vision of the future but are increasingly becoming a tangible component of Industry 4.0. These applications need innovative, blockchain-based payment methods that meet specific technological requirements.
This brochure presents the needs of industry in the context of digital currencies1 and their potential benefits. This topic is not just relevant to consumers and the financial industry but is also of increasing importance to industrial business models. Digital means of payment do more than just change technical processes, they are also central aspects of geopolitics and economic policy. Monetary areas that are unable to reduce the frequently invisible complexity and costs of their payment transaction systems and promote innovation are losing their international appeal. It is therefore of paramount importance that the EU resolutely responds to the international competition from the United States and China in this field.
Digital payment options suitable for industry must be made available in the near future. First approaches from the private sector are already in place or in development. The European legislator and the European Central Bank need to follow course and provide a version of the digital euro designed for industrial application.
Our political decision makers must be open to innovation in this area and develop the regulatory parameters to allow this to happen. The digitalisation of the payment system needs to be understood as a socio-technological transformation rather than isolated technological innovations. A transformation that will realign current economic structures, regulatory parameters and social expectations. Digital currencies are much more than just a purely financial topic. Their strategic importance requires close coordination between economic, digital and financial policy.
1 For reasons of simplification, the term ‘digital currencies’ as used in this paper refers to stablecoins and similar digital assets although, strictly speaking, they are not a legally defined monetary unit and, as such, not currencies in the legal sense of the word.
Tanja Gönner Director General
“If you always do what you’ve always done, you’ll always get what you’ve always got.”
Henry Ford
Key Messages
• The introduction of digital payment methods is not only changing processes. It is also changing roles, responsibilities and the way value creation is organised. Digital currencies are therefore not an isolated financial issue. Their strategic relevance and broad range of applications require close integration of digital, financial and economic policy. In addition, the issue takes on a geopolitical dimension. Currency areas that remain complex, are slow to innovate and ignore relevant impulses are losing their international appeal.
• Various recent developments show how heavily Europe depends on non-European providers in key areas of payment transactions. In order to strengthen technological sovereignty, European solutions must be specifically promoted and the regulatory framework further developed in an innovation-friendly manner.
• Certain requirements must be met for digital currencies to be used in industry. The focus is on technological functionalities, interoperability, regulatory aspects and requirements for data security and trustworthiness depending on the use case. In principle, the ECB's digital euro, the commercial bank money token and stablecoins could all be considered for this purpose – provided they meet the requirements.
• In addition to developments in the financial sector, the ECB should also consistently develop its activities for digital B2B payments and establish a timetable and technical framework for this. The ECB should be obliged to do so in the regulation on the digital euro. European legislators are called upon to consider appropriate approaches in order to establish the digital euro as an industry-ready means of payment from the outset.
• New standards in payment transactions can help to scale solutions more quickly and more broadly in the market. MiCAR offers a good starting point. The German Electronic Securities Act should also be consistently developed further – for example, by allowing crypto bearer shares, blockchain-based shareholder communication and smart contracts. In order for stablecoins to be used competitively, they should be treated in the same way as existing means of payment for tax and accounting purposes, or at least no longer entail any significant disadvantages.
The Future of Money 1
The digitalisation of the financial sector is progressing apace with disruptive technologies and new players placing growing pressure on established structures
Digital currencies2 such as bitcoins, stablecoins and the digital euro are at the centre of a deep-reaching transformation that has long transcended purely technical issues, affecting geopolitical capabilities, economic connectivity and the future viability of entire monetary areas.
The digital era in the financial sector is gathering pace
In the last ten years, digitalisation has changed the face of the financial sector. New technologies, from blockchains and artificial intelligence to digital platforms, have accelerated, automated and globally connected traditional processes. At the same time, new market players have emerged presenting innovative solutions that are and will continue to challenge conventional business models.
A central component of this development is the digitalisation of means of payment. Bitcoins and Libra, or Diem, are two examples that managed to become the subject of broad public discourse. The Libra project, initiated by Facebook in June 2019 and later renamed Diem, was designed to become a global digital currency and presented as a solution for people without access to traditional banking systems. The initiative prompted regulatory debates around the world and was seen as a wake-up call to central banks, accelerating development and more urgent discussions on the subject.3 After facing huge criticism, upon which numerous partners withdrew from the project, it was definitively abandoned in February 2022. Bitcoins, which started as an experimental means of payment in 2009, have since become a more or less accepted if highly volatile digital asset.
One product that has become the focus of public discourse for some time now is stablecoins. While many central banks have started to develop digital versions of cash4 , the private sector has responded to the usually highly volatile nature of conventional cryptocurrencies with stablecoins as a digital means of payment whose value is designed to remain stable. The product is nonetheless controversial. Like the Libra, stablecoins has also prompted serious and wide-reaching strategic discourse on the future design of the monetary system and, as in the case of the Libra, the development in the public sector and in banks is being driven by the private sector initiatives of technology companies.
Stablecoins are digital assets whose values are pegged to a stable reference currency. They are not without controversy, however, the primary point of criticism being possible systemic risks. Advocates, on the other hand, praise their capacity to drive innovation by substituting complex and expensive means of payment with very rapid transactions thereby stimulating economic progress.
2 For reasons of simplification, the term ‘digital currencies’ as used in this paper refers to stablecoins and similar digital assets although, strictly speaking, they are not a legally defined monetary unit and, as such, not currencies in the legal sense of the word.
3 Reuters (2019) EZB-Direktor nennt Libra-Projekt "Weckruf" für Zentralbanken | Reuters
4 CBDC Tracker (2025) Central Bank Digital Currency (CBDC) Tracker
A geopolitical issue that affects international competitiveness
The digital monetary system does not just concern consumers, traders, financial service providers and central banks. Digital currencies form an integral component of the digital monetary system and are also of central importance to German industry.5 The future capability of a monetary system has become a decisive issue of geopolitics and economic policy. Monetary areas that are unable to reduce the frequently invisible but high complexity of their payment systems in order to cut costs and become more innovative are losing their international appeal. Of equal importance to ensuring that a currency as such remains internationally appealing and enjoys the confidence of consumers and companies is securing its technological connectivity and, with it, its suitability for automated industrial processes, digital platform economies and international trade relations. Digital currencies can form the link between financial systems and industrial value added. If designed to enable programmable payments, they can enhance the resilience of global supply chains and open up new business models in the context of Industry 4.0. Monetary areas that adopt standards early, establish regulatory clarity and promote and permit innovation in this field stand to secure their geopolitical capability and economic connectivity in the digital age.
Digital currencies are electronic forms of money that are issued either by central banks (central bank central currency), financial service providers (e.g. commercial bank money tokens or stablecoins) or decentralised protocols (e.g. Dai of MakerDAO). Digital currencies can open up the potential for industrial enterprises to transform their business processes and enable new business models while also reducing the costs of payment transactions and increasing the transparency and speed of payments.
How much transformation do we really want?
It is not yet clear how deep-reaching and permanent the changes to the existing monetary system will turn out to be. The future means of payment, their digital design and interplay in the mix of different means of payment are all still up in the air, with shifts in the roles of players involved in monetary policy and the financial sector also possible. Many of the key decisions here will be in the hands of central banks and legislators. They will have to decide what products they are willing to provide, approve by regulation, or design. A further important player is the financial industry itself. It must also decide which role it wants to play with which products. Ultimately, the individual stakeholders will need to show how much real transformation they are willing to allow and to what degree they are willing to question and adapt the existing roles and business models towards a more innovative economic structure. Close collaboration between all the stakeholders will be decisive in this process.
Risks and opportunities need to be weighed up without erring excessively on the side of caution. Digitalisation harbours potential that should be used. This also means being open towards new technologies, taking action based on the competition and in line with international developments, and having the courage and will to shake up existing structures. Ground-breaking technologies often face resistance because existing regulations, infrastructures, user habits and maintenance structures are based on established structures which only permit gradual change.6
5 BDI (2022), Digitaler Euro – Industriebedarfe bei Etablierung nicht vernachlässigen
6 Geels (2002), Technological transitions as evolutionary reconfiguration processes: a multi-level perspective and a case-study – ScienceDirect
Digital currencies not only represent innovation in payment systems, but can also mark a profound sociotechnological transformation.
Rethinking Payment
Digital currencies open up new paths for industry, from integrated supply chain solutions to machine-based transactions up to automated payment processes.
The digitalisation of the monetary system opens up numerous opportunities for industrial enterprises to increase the efficiency of their processes that are not possible or only partially possible with traditional methods of payment. Digital currencies are therefore not just new means of payment available around the clock but also potential drivers of innovation for automated, integrated and transparent business processes. The biggest innovation in the industrial area is not in the digitalisation of payment as such but in the interconnection of payment processes with operational business processes such as logistics, production and order processes on a common digital platform.
Examples:
1
Self-billing supply chains
In a digitalised supply chain, the individual components such as machines, vehicles or containers, can trigger and settle payments independently without requiring manual intervention. This is enabled by the combination of digital currencies, smart contracts and IoT technologies such as sensors that carry out transactions immediately and conclusively (instant settlement).
2
Corporate financing
Digital currencies and smart contracts can considerably simplify and accelerate financing processes, also in the issue of securities, the conclusion of currency transactions and in CO2 emission allowance trading, with the participating parties (issuers and investors) interacting via automated contractual arrangements that execute payment and delivery (delivery versus payment). Transactions are thus executed simultaneously and in real time between the defined target addresses, enabling the reduction of risks and the automation of processes.
3
Cross-industry resource markets
Companies can directly trade free capacities, energy and data flows between machines without a central intermediary. For example, a painting facility can sell surplus process heat directly to a neighbouring chemical facility or an automated forklift system can book charging time at an available charging station and automatically pay for it from its digital wallet.
4 Automated payments
based on shared data infrastructures
In digitally networked industrial ecosystems, companies can automate and control payment processes as well as share information. Digital currencies enable a direct connection of data flows with payment logistics so that payment can be triggered and booked automatically as soon as a production output, use of resources or provision of service is confirmed by an infrastructure.
5 Instant settlement
Digital platforms enable the recording and automated settlement of the use of machines, facilities and industrial resources in real time. Usage data is directly transferred from the machine to the platform via integrated IoT interfaces and evaluated and instantly settled using smart contracts. For example, a CNC milling machine can thus be automatically settled according to operating hours without manual intervention or delays.
6
Invoice
verification and payment
With the continuous verification of order and invoice data between the customer and supplier, invoice verification can be automated entirely. Digital currencies enable direct payment on the same platform, from the wallet of the customer to the wallet of the supplier. This makes payment referencing more efficient and provides clarity about the amount and time of payment.
7
Earmarked
tokens
Programmable tokens7 allow companies to control payments in a targeted fashion and to influence economic behaviour within open or closed ecosystems. In contrast to freely used money, tokens can only be used for specific purposes or transactions making new forms of process management and market design possible. They could also be used to assist controlling as part of a more efficient industrial policy.
Industrial enterprises need the right parameters to tap into the potential of digital currencies.
Currency Design 3
Technological functionality
Digital currencies need to be seamlessly integrated into digital processes in order to enable new forms of automation:
• Smart contract capability: Integration of business and payment processes in a common system environment.
• Programmability: Flexible adjustment of payment logistics to operational requirements. This ensures the reliable and automated fulfilment of contractually agreed requirements.
• Atomic settlement: Indivisible and guaranteed transactions – either in full or not at all.
• Micropayments / sub-cent payments: Extremely small payments, e.g. for machine services based on pay-peruse, must be possible.
Network integration and availability
A stable and flexible technical infrastructure is of decisive importance for industrial application:
• Availability in relevant blockchain networks: Usability in private and public networks. Access and use must be global and simple in order to enable broad application and scalability.
• 24/7 availability: Payments need to be executable at any time, independently of business hours.
• Unlimited holding: No limitations of the volume that companies are allowed to hold and pay with technical solutions available for unlimited amounts.
Interoperability
Digital currencies must be compatible with existing systems and other forms of currency:
• Interoperability with other state currencies such as the euro and other digital currencies.
• Compatibility with different technical solutions: Integration in different platforms and protocols.
Regulatory feasibility
Legal clarity and simple integration in existing business processes are a precondition for broad acceptance:
• Regulatory clarity and acceptance: Reliable framework conditions create trust.
• Simple integration in business processes: Uniform fulfilment of tax and commercial law compliance and reporting duties.
Data security and trustworthiness
The protection of sensitive corporate and transaction data is essential, particularly for industrial enterprises with confidential business relations and contract information. The use of digital currencies and their technical implementation will therefore require varying levels of data security and trustworthiness depending on the application.
• Trustworthiness despite blockchains: Business relations, payment flows and supply chains must not be publicly viewable.
• End-to-end encryption: Transaction data must be secured to accommodate particularly sensitive business activities.
• Data protection conformity: Adherence to legal requirements such as the General Data Protection Regulation is essential.
• Cyber resilience: Protection against manipulation, data leaks and system outages with robust security mechanisms.
• Transparency and inalterability: Transparent and auditable data processing for internal and external audits.
• Trustworthiness of infrastructure: The technologies and operators of digital currencies must meet the highest standards regarding integrity, transparency and responsibility to gain the trust of companies and partners.
Digital currencies can fundamentally change business processes provided they are technologically capable, available at all times and clearly regulated in terms of security and legal aspects. They must be capable of being smoothly integrated technically while also protecting sensitive data and seamlessly supplementing existing systems.
Instruments with a Future?
The future of the monetary system is open and is marked by global contradictions and technological breakthroughs.
Digital central bank solutions, commercial bank money tokens as well as stablecoins could open up new opportunities for German industry provided they are structured correctly and there is an extensive range of offers.
Diverse picture
While the future of the monetary system is still unclear, various developments in different monetary areas give some indication of what is to come. As we are currently still at the beginning of this transformation, strategic reorientations cannot be ruled out.8 This is all the more true as there have not yet been any significant crises and both the regulatory framework and the new digital forms of money have not been extensively tested out under real stressed conditions. At the same time, it should also be pointed out that no relevant blockchains have so far been compromised. Technical attacks on transactions are factually not possible, instead, hackers try to trick users into giving them sensitive information.
The overall situation is in flux with two approaches currently dominating the picture. On the one hand, some countries, including the United States9 and increasingly also China10 , are backing private sector stablecoins issued by regulated companies and pegged to existing currencies. The focus here is on innovation, market flexibility and global scalability with the objective of securing the competitiveness of their own currency in the digital area and establishing their strategic importance in global payment flows. On the other hand, central banks, such as the European Central Bank (ECB), the Bank for International Settlements (BIS)11,12 , and the initiators of the Digital Dirham13 , have initiated projects for publicly controlled central bank digital currencies aimed at building confidence and creating stability in monetary policy. Some analysts believe that a combination of both systems could be viable with stablecoins acting as a useful component from the private sector to supplement central bank digital currency.14 There are
8 On 23 January 2025, Donald Trump signed the Executive Order entitled Strengthening American Leadership in Digital Financial Technology, barring the development, issue and use of CBDCs within the United States. Before the ban, many market analysts had assumed that central bank currencies would dominate the field.
9 Paymentsdive (2025) Trump order embraces stablecoins, bars CBDCs | Payments Dive
10 CNN (2025) Stablecoin frenzy: China’s incubating crypto in Hong Kong but the city’s strict rules are frustrating entry | CNN Business
11 BIS (2025) III. The next-generation monetary and financial system
12 The BIS favours a monetary and financial system centred on a unified tokenised ledger that integrates central bank money, commercial bank deposits and government bonds.
13 Central Bank of the UAE (2025) Digital Dirham –A Primer on the UAE’s Central Bank Digital Currency
14 McKinsey (2021) Central bank digital currency and stablecoin: Early coexistence on an uncertain road | McKinsey; Oesterreichische Nationalbank (OeNB) and BCG (2025) Euro Money Tokens: Potential Economic Role of CBDCs and EuroDenominated Stablecoins – Oesterreichische Nationalbank (OeNB)
furthermore several financial sector initiatives from individual banks of different countries, including Germany, that are or want to make tokenised deposits available to their customers.
This situation is very challenging for industrial enterprises as technology users, not only because of the uncertainty surrounding technological standards but also because of the strategic implications for their international competitiveness, data sovereignty and integration in global payment structures. A core aspect of a digitalised monetary system is a token-based payment system, in effect the availability of a currency on a blockchain. The availability of digital currencies on a blockchain creates a new market. Players need to be on the scene at an early stage and show strategic commitment in order to tap into this new market. The United States is the leader in this area, above all with strong private sector initiatives that are setting technological standards.
The future of the monetary system is still open. Different approaches are emerging varying from state-controlled central bank currencies and private sector stablecoins. There are also mixed forms and projects for tokenised deposits are on the rise. It is of decisive importance that Europe actively helps shape standards in this field from the beginning.
The ECB and its digital currency
The ECB is driving the digitalisation of the monetary system in Europe with its digital euro project, thus making a significant contribution to the further technological development of the region which is praiseworthy in itself irrespective of the evaluation of the individual results. While the retail euro is primarily designed for use without blockchain technology by consumers for payment transactions in shops, restaurants and in e-commerce, the ECB is pursuing the integration of blockchain technology for the processing of large payments between commercial banks and central banks in the wholesale sector. The short-term project Pontes will pilot a link between distributed ledger platforms and the existing TARGET services15 until the end of 2026 to enable transactions in central bank money with the objective of providing a secure, transparent and efficient payment system. The vision of the ECB’s long-term project Appia, in contrast, is to create an innovative and integrated finan-
15 TARGET Services are central payment and settlement systems of the Eurosystem to settle money, security and real-time payments in central bank money. They comprise T2 (large-value euro payments), T2S (securities transactions), TIPS (instant payments) and ECMS (collateral management) and form the technical foundation for European payment and settlement systems.
cial ecosystem that is compatible beyond Europe’s borders with a modern infrastructure that enables programmable financial processes, automation through smart contracts and the consolidation of trading, settlement and holding functions.16
While the digital euro for the interbank market has been met with widespread approval, the consumer version has come up against much resistance. The ECB’s objective of strengthening European sovereignty in payment systems and creating an alternative to the US-based private sector payment solutions is correct and important, as is having a publicly controlled digital means of payment in times of crisis. However, critics are unclear as to which specific problem the digital euro solves in the retail segment apart from countering geopolitical risks,17 arguing that existing payment systems are efficient, secure and widespread both in stationary trade and in e-commerce. Furthermore, having an additional official system risks causing significant costs and unnecessarily duplicating the tried and tested infrastructure without providing any clear benefits.18 Another concern is that the outflow of deposits in banks could have negative effects on lending.
Every technical progress to payment systems that makes a significant improvement is positive. However, the solutions pursued by the ECB have so far failed to provide any benefit for industrial enterprises. The digital euro in the retail sector does not have any blockchain infrastructure whatsoever and is therefore unsuitable for automated supply chain processes, programmable payments and integration in digital business processes. The wholesale version, in contrast, while based on distributed ledger technology, is primarily focused on the financial sector and the settlement of traditional interbank payments. Industrial B2B application has so far not been considered. The Appia project, which is supposed to create a long-term innovative and programmable financial ecosystem, theoretically has the potential to be used for industrial application but may well be too late on the scene for many companies that are already working with digital business models and global supply chains. If the ECB fails to provide a solution that is compatible with the industrial sector swiftly it risks being left behind private sector developments that are already providing functional blockchain-based payment systems for B2B processes.
The digitalisation of the monetary system could bring central banks closer to enterprises of the real economy depending on its design.
Commercial bank money tokens
Another digital form of money under discussion is the commercial bank money token which enables the mapping of commercial bank money on a blockchain and provides the same level of security, stability and conformity to regulations as conventional commercial bank money. It thus provides the basis for programmable payments, automated processes and digital business models. It could be integrated efficiently in industrial value chains and has the potential, similarly to stablecoins, to cut costs and digitalise cross-border payments.19 The concept is currently being tested in a German sandbox environment operated by a small number of German banks and selected large industrial customers.20 The concept is also being tested in Switzerland,21 the United Kingdom22 and in France23 . In addition, the major banks JP Morgan and HSBC are also introducing tokenised deposits for institutional customers.24
Commercial bank money tokens meet the key requirements of industry. They are based on an existing instrument, commercial bank money, transferred to a new technological form and would only necessitate minimal adjustments in bookkeeping, accounting and regulatory processes. Another advantage is the uniform mapping of the euro in the DLT process environment which means that it has a higher level of acceptance and makes for potentially easier processes than other digital forms of money such as stablecoins. There is still a lack of regulatory clarity here though.25 Commercial bank money tokens can only be established as an interoperable standard and unfold their potential advantages if there is widespread participation throughout Germany and Europe. Stablecoins face the same challenge.
16
17 Navarrete (2025) 8. Do we really need the digital euro: a solution to what problem exactly?
18 PwC (2025) Digital Euro Cost Study – PwC
19 Association of German Banks (2023) Working Paper on Commercial Bank Money Token
20 BDI (2024) Commercial Bank Money Token
21 Neue Zürcher Zeitung (2025) Schweizer Banken entwickeln Antwort auf Stablecoins – Der digitale Franken
22 Crédit Agricole (2025) Report
23 Cointelegraph (2025) UK Finance Works With Quant For Tokenised Sterling Deposits
24 BTEcho (2025) J.P. Morgan deklassiert EZB: So schafft man einen Geldstandard, Bloomberg Law (2025) HSBC Starts Tokenized Deposits to Move Currencies Across Borders
25 At the time of writing this paper, a corresponding proposal was still being processed by BaFin, the German Federal Financial Supervisory Authority.
ECB (2025) ECB commits to distributed ledger technology settlement plans with dual-track strategy; ECB (2025) Digital euro (D€)
Commercial bank money tokens are digital representations of scriptural money that is currently on traditional bank accounts. Plans are for these tokens to be issued by commercial banks and used in programmable, digital ecosystems. Commercial bank money tokens have the potential to combine efficiency, data sovereignty and regulatory protection with industrial scalability and connectivity to other digital forms of payment. Crucial for the product’s success is that a sufficiently large number of banks offer it and that interoperability is secured.
Stablecoins becoming increasingly relevant
In the last few years, stablecoins have become established as a dynamically growing component of the digital financial system. Stablecoin market capitalisation was at around 280 billion US dollars as of September 2025 with daily transactions to the tune of around 180 billion US dollars.26 Even though stablecoins only account for a very small proportion of global money flows so far, this proportion is growing rapidly, pointing to significant future potential. Stablecoins enable fast, low-cost and transparent payments that transcend bank opening hours, geographical borders and traditional intermediaries. Stablecoins combat key weaknesses of existing payment systems such as long settlement times, limited availability and low efficiency. Stablecoins are becoming ever more relevant on the back of continuing technological progress and rising regulatory clarity, with MiCAR in the EU and the GENIUS Act in the United States. They also offer new possibilities for cross-border payments. The next few years will show if stablecoins manage to become an integral component of international payment systems or not. 27 Several major European banks have already announced that they will join forces to launch a common euro-denominated stablecoin. 28 Furthermore, the Deutsche Börse has integrated stablecoins such as USDC (pegged to the US dollar) and EURC (pegged to the euro) in its infrastructure.29
Despite the potential benefits, industrial enterprises also see challenges in using stablecoins. As stablecoins are largely issued on public blockchains, all transactions are permanently and completely viewable via platforms such as Etherscan in the Ethereum ecosystem. Although the wallet addresses are pseudonymised, modern analysis tools
26 Coinmarketcap (2025) Cryptocurrency Prices, Charts And Market Capitalizations | CoinMarketCap
27 McKinsey (2025) Stablecoins payments infrastructure for modern finance | McKinsey
28 ING (2025) Nine major European banks join forces to issue stablecoin | ING
29 Handelsblatt (2025) Kryptowährung: Deutsche Börse öffnet Infrastruktur für Stablecoins
enable these to be linked to real persons or companies. The so-called on/off ramps are particularly vulnerable30 . These are the points at which personal data is linked up with transaction histories which also makes payments in supposedly anonymous networks such as bitcoins traceable. Cryptographic procedures such as zero-knowledge proofs are increasingly being adopted to address these risks and ensure the confidentiality of stablecoin transactions.31
The dominance of US dollars as the denominating currency of stablecoins clearly shows the geopolitical dimension of this issue. While MiCAR has managed to create regulatory clarity for the first time in Europe, the strong fragmentation, with different euro and US dollar stablecoins, increases the complexity of payment settlement and makes it more difficult for companies to consistently control liquidity and payment processes. In addition, legal framework conditions that regulate the equal treatment of stablecoins with existing payment means such as cash are not yet in place for accounting and tax purposes, for example. The risk for the issuer is also higher in comparison to bank products for stablecoins are not issued by banks.
Stablecoins are rapidly becoming more important, opening up new opportunities for global, efficient and transparent payments. With rising regulatory clarity and technological progress, they are becoming an increasingly viable option although major challenges remain, including data protection, a possible additional risk of default, interoperability and the dominance of the US dollar.
30 Interfaces at which cryptocurrencies are exchanged into fiat money.
31 CoinDesk (2025) Crypto Custody Firm Taurus Releases
Open Source Privacy Tech for Stablecoins; Circle (2025)
Introducing Arc: An L1 Blockchain for Stablecoin Finance
Fig. MiCAR vs. GENIUS Act
Aspect MiCAR (EU)
Strategic objective
Regulatory focus
Stablecoin perspective
International aspiration
Innovation vs. control
The crypto race
Market integration & driving innovation
Harmonisation of the EU crypto market
Part of a wide crypto framework
EU-wide rulebook with passporting
Promotion of fintechs & competition
Cryptocurrencies such as bitcoins and ether have grown from a niche phenomenon to a global investment vehicle in the last few years. In 2024, their market capitalisation reached an all-time high of around 3.7 trillion US dollars before dropping down to 2.8 trillion US dollars in the first quarter 2025, reflecting their extremely high volatility. In 2024, bitcoins were around twice as volatile as gold and three times as volatile as S&P 500.32 The high level of price uncertainty of cryptocurrencies makes them less appealing as a means of payment. Although there are examples where they are being used as a means of payment,33 they are more widely used as speculative investments by both retail and institutional investors. The correlation of crypto assets to stock markets has, however, increased considerably since 2020, underlining their role as risk carriers and diminishing original hopes that they would harbour risk diversification benefits.34 Cryptocurrencies nonetheless fulfil an important function in being of core importance to open blockchain networks as they provide an incentive, in terms of game theory, to secure the integrity and security of these decentralised infrastructures. Without these kinds of economic incentives, it would be much more difficult to ensure trustworthy and stable systems without a centralised monitoring authority.
32 ECB (2025) Just another crypto boom? Mind the blind spots
33 NZZ (2025) Spar Schweiz lässt Kunden mit Bitcoin und Co. bezahlen
34 IMF (2022) Crypto Prices Move More in Sync With Stocks, Posing New Risks
GENIUS Act (USA)
Strengthening the US dollar and fiscal aspects
Geopolitical positioning of the US dollar
Core instrument to maintain currency dominance
Bind to US market through extraterritorial impact
Control & confidence through strict authorisation
Cryptocurrencies only provide limited practical benefits to industrial enterprises in operational payment transactions. While there are applications in the area of cross-border payments in some emerging countries, their use in advanced economies is largely confined to investments. 35
35 ECB (2023) Global and local drivers of Bitcoin trading vis-à-vis fiat currencies
Cryptocurrencies are volatile and, as such, unsuitable as a means of payment. Their use so far is largely restricted to speculative investment and not productive application.
Digital means of payment are on the rise but there are not yet any suitable solutions for industry. The ball is in the court of the ECB, banks, e-money institutions and legislators..
Action Needed 5
Is German industry spoilt for choice?
Not yet. Although technological developments related to digital money are very advanced in part, there are still no widely available practicable solutions for industrial enterprises. Digital means of payment have long moved on from being just a technical detail in payment transactions. They are an increasingly important strategic factor playing into the competitiveness of companies and whole economies. It is not just about increasing efficiency in transactions, but much more about opening up new business models through enabling, for example, automated payments between machines, smart contracts and the integration of digital currencies in industrial platforms.
The future competitiveness of monetary areas might also determine the overall competitiveness of industrial enterprises. Companies that have access to a powerful digital infrastructure will be able to implement innovations more swiftly, reduce costs and tap into new markets. In this context, it is of decisive importance that the euro plays an active role in the digital area. While the US dollar already has a strong digital presence on account of private sector blockchain-based stablecoins, euro solutions are so far only available to a much more limited extent. The concrete possibility that considerable parts of the global financial system will, in future, be mapped using blockchain technology makes it all the more important for the euro not to fall behind in this field.36 37
The next question then is who should provide a digital currency solution for industry? The public or the private sector? Or a mixture of both? The opinions here are divided. While innovation capability and the capacity to react rapidly to new trends are characteristic of the private sector, a public sector solution would enable the necessary blanket standardisation. For German industry, the decisive factor is that all relevant stakeholders, the ECB, banks, e-money institutions and legislators, recognise the urgent need to act swiftly.
German industry faces the risk of losing its lead as digital means of payment become a strategic competitive factor. Without any practicable euro blockchain solutions, the US dollar stands to further establish its dominance in the digital area to the detriment of European sovereignty and competitiveness. German industry is well aware of these dynamics and will continue to actively help shape this socio-technological transformation.
36 SWIFT is developing a blockchain platform in response to the rise of stablecoins to enable real-time transactions and interoperability between banks; more than 30 institutes are participating in the pilot phase.
37 SWIFT (2025) Swift to add blockchain-based ledger to its infrastructure stack
Banks and e-money institutions as possible pacemakers
The first practicable solutions for digital money could well come from the financial sector. It would be crucial that these solutions are not based on swiftness alone but are also designed for broad standardisation and interoperability. Digital means of payment will only be able to unfold their full potential in industrial application if they meet defined requirements.
Banks are under considerable pressure here. Particularly in the United States, they are facing increased competition from stablecoin providers that are storming the market with a high pace of innovation and growing market penetration. At the same time, digital currency solutions require high-volume investment, and it is currently still unclear which model is going to become established in the long run. With this in mind, a consortium solution as currently being investigated by banks in the United States and planned by some major European banks, appears to be a viable option to both benefit from economies of scale and address regulatory requirements.38 Another advantage of this approach would be a product that is as uniform as possible and that does not require unnecessary changes in media formats when used by many players.
Stablecoins would also be suitable for industrial application with targeted adjustments. Data protection and security will play a central role in their further development. Promising approaches here are so called zero-knowledge KYC procedures.39 Stablecoin protocols could also, in future, be equipped with optional privacy layers. These would enable users to select between completely transparent transactions and transactions that offer more data protection depending on their requirements. Digital wallets could also have additional security functions.40 A consortium solution would guard against the potentially increased complexity in payment settlement arising from having many different stablecoin providers. This would also ensure a consistent management of liquidity and payment processes within companies. Legal and tax regulations would also have to be adapted to ensure equal treatment with existing means of payment. Possible issues of trustworthiness would be solved by banks issuing stablecoins or working in close collaboration with technological companies. A regulation is in place that seems to be adequate for the time being at least.
38 Wall Street Journal (2025) Exclusive | Big Banks Explore Venturing Into Crypto World Together With Joint Stablecoin – WSJ, ING (2025) Nine major European banks join forces to issue stablecoin | ING
39 In these procedures, users to not have to disclose all personal information but only prove that they meet certain requirements, such as minimum age, a place of residence in a specific country or that they are not on any sanctions lists. This enables regulatory requirements to be met without endangering the privacy of individuals unnecessarily.
40 This includes, for example, the automatic change of address or technical procedures to obscure transaction data on the blockchain to better protect sensitive data.
With the number of initiatives for commercial bank money tokens rising substantially, they are increasingly moving to the foreground as a possible solution. They could be issued by regulated banks and be connected directly to existing payment systems. The advantages for industrial enterprises would be stability, regulatory integration and the integration in existing processes particularly for applications requiring a high level of compliance and reliability.
For application in industry of both commercial bank money tokens and stablecoins, the involvement of industrial enterprises at an early stage in their development is of central importance. The specific needs of industry can only be taken into account from the beginning with close collaboration between the financial sector, technology providers and industry in both technical and strategic aspects.
The potential offered by digital means of payment can only unfold if there are uniform standards and interoperable solutions in place. Consortium models for
ECB in pursuit of a solution
The ECB’s current concept of the digital euro does not include B2B application which makes the project of limited relevance to industrial enterprises. Should the ECB decide to take greater account of industrial application, there are several possible options that could fit the bill. One such option would be to design the digital euro in a similar fashion to the plans of the central bank of the United Arab Emirates with its Digital Dirham. A core element here is the use of a blockchain-based solution. Alternatively, the wholesale version of the digital euro that is currently only intended for interbank transactions could also be opened up for use by companies. An interim solution could be the creation of an additional platform level based on the Digital Euro Settlement Platform (DESP) of the retail version targeted for industrial application, including blockchain.
As it is currently not yet foreseeable whether the financial industry will develop a feasible solution for digital B2B payments independently, the ECB should resolutely continue developing its activities in this direction and define a timeline and technical framework for doing so. Especially if the ECB provides blockchain-based applications or other applications itself, it should take account of the requirements of industrial enterprises at an early stage. German industry is prepared to continue actively helping to shape this process.
For industry, the digital euro is still a project that does not have a direct solution for application in industrial contexts. By disregarding possible B2B application, the ECB risks losing sight of the central requirements of industry even though industrial application would be technically and strategically possible. Industry is prepared to continue to actively shape development in this direction.
Political support for an open innovation culture
Political decision makers are called on to adopt a stance that welcomes innovation and actively further develop the regulatory framework. The digitalisation of the monetary system should be seen as a socio-technological transformation which does not consist of isolated technological innovations but, rather, realigns existing economic structures, regulatory framework conditions and social expectations. The introduction of digital means of payment does not just change processes but also changes roles, responsibilities and the way in which value added is organised. This means that digital currencies are not an isolated financial topic but, on account of their strategic relevance, require a close interconnection of economic, digital and financial policy.
The most recent security problems of PayPal 41 have once again shown how dependent Europe is on providers outside of Europe in central aspects of payment flows. Strengthening Europe’s technological sovereignty will require encouraging European solutions and adapting the regulatory framework to better enable innovation. The principle of technological neutrality should also be observed. Data protection requirements need to be met irrespective of the technology used. Blockchain technology should not be regarded as necessarily incompatible with data protection.
New standards in payment transactions could help to scale up solutions more easily on the market. The MiCAR provides a good starting point for new standards. The German Electronic Securities Act should also be resolutely developed further, for example, with the authorisation of tokenised bearer shares, blockchain-based shareholder communication and smart contracts. This could enable tokenised financial instruments to be used more widely and secure the competitiveness of Europe as a trading location. Stablecoins should have the same tax and accounting treatment as existing means of payment or at least no longer have any significant disadvantages. In the regulation on the digital euro, the ECB should be obliged to also take account of B2B application. European legislators are called on to consider corresponding approaches to establish the digital euro as a means of payment that is suitable for application in industry from the very beginning.
Policymakers need to show courage and curiosity regarding innovations, review regulations to avoid barriers to innovation, and strengthen technological sovereignty. Digital currencies are drivers of economic and social transformation and, as such, merit a close interconnection of economic, digital and financial policy.
41 German consumer advocacy association Verbraucherzentrale (2025) Chaos um PayPal: Was Sie über den Zahlungsstopp wissen müssen | Verbraucherzentrale.de
Index of abbreviations
BIS Bank of International Settlement
B2B Business to Business
CBDC Central Bank Digital Currency
EUR Euro
EZB Europäische Zentralbank
IoT Internet of Things
KYC/AML Know-Your-Customer/Anti-Money-Laundering
USD US-Dollar
Imprint
Publisher Federation of German Industries
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T.: +49 30 2028-0 www.bdi.eu
Editorial Sven Schönborn
Senior Representative Research, industrial and economic policy
Managing Director, BDI Committee
Corporate Finance and Financial Markets s.schoenborn@bdi.eu
Conception & Implementation
Sarah Schwake and Olga Begandt
Marketing, Online and Events Department
Layout Maria Dolecek
Date October 2025
Image Credits
Cover | 485262617 | AdobeStock
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P. 14 | Finn Protzmann | unsplash
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P. 20 | Nathan Dumlao | unsplash
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