17.02.202614:38 Forex Analysis & Reviews: EU policymakers discuss stablecoins

While Bitcoin continues a gradual descent, showing no sign of any clear rebound, ECB Governing Council member Joachim Nagel said in an interview that euro-denominated stablecoins could become a useful tool for low-cost international transfers, complementing the European Central Bank's efforts to create a unified digital currency.

The Bundesbank president said Europe needs to become more independent of payment systems and highlighted the ECB's work on a digital euro. He spoke at an event at the American Chamber of Commerce in Germany, where he also saw advantages in euro-denominated stablecoins and that they could be used for low-cost international payments by individuals and firms.

According to Nagel, euro-backed stablecoins have the potential to materially cut transaction costs and speed up cross-border payments. That is particularly relevant given the existing infrastructure, which is often expensive and slow. The initiative echoes a global trend toward the digitalization of financial services and regulators' efforts to strike a balance between innovation and control.

However, despite the obvious benefits, issuing and regulating such stablecoins represents a complex challenge—especially for the EU's bureaucratic apparatus. The ECB will likely seek to ensure that any stablecoins issued in the euro area meet strict standards to safeguard financial stability and protect consumers. Issues such as user identification and measures to combat money laundering and terrorist financing will also require close attention.

Nagel's remarks reflect growing openness at the ECB toward euro-pegged stablecoins, after some officials had voiced concerns about the dollar's dominance and about the fact that these instruments are issued by private parties and could pose threats to financial stability.

Trading recommendations:

According to a technical analysis, buyers of BTC are currently targeting a return to $68,900, which would open a direct path to $72,100 and then $74,600. The farther target is the peak near $77,300. Clearing that level would signal attempts to restore a bullish market. On the downside, buyers are expected at $65,600. A fall below that area could quickly push BTC toward $62,600, with a further downside target near $60,100.

As for Ethereum, a clear consolidation above $1,998 would open a route to $2,078. The farther target is the peak near $2,169. Surpassing that level would strengthen bullish sentiment and renew buyer interest. If ETH falls, buyers are anticipated at $1,907. A return below that zone could rapidly send ETH down to about $1,819, with a farther downside target near $1,724.

What we see on the chart:

- Red lines indicate support and resistance levels where either a price slowdown or active growth is expected;

- Green lines indicate the 50-day moving average;

- Blue lines indicate the 100-day moving average;

- Light green lines indicate the 200-day moving average.

A crossover, or a price test of moving averages, typically either halts the move or sparks fresh market momentum.