LIAN Group founder predicts euro-based stablecoins to weaken dollar dominance by 2028

Euro-based stablecoins could rival their dollar counterparts by 2028, according to Fiorenzo Manganiello, founder and managing partner of LIAN Group.

The analyst points to growing weaknesses in the dollar. The currency has plunged to a three-year low due to delayed rate cuts, an increasing budget deficit, and rising recession risks in the US.

This decline presents an opportunity for the euro to solidify its position as a global reserve currency. ECB President Christine Lagarde is pushing to strengthen the euro, arguing it has strong potential to challenge the dollar's leadership in global finance.

Today's stablecoin market is heavily dollar-dominated, with 56 USD-pegged coins compared to just 12 euro-based alternatives. But Manganiello believes this imbalance could flip entirely within a few years.

The expert cautions that completely displacing the dollar could be a decades-long process. Nevertheless, he predicts stablecoin issuers will actively capitalize on the euro's growing appeal.