European Central Bank officials have stepped up warnings that the euro remains ill-equipped to challenge the U.S. dollar’s supremacy in either traditional reserves or the fast-growing market for crypto stablecoins. Governing Council member Gabriel Makhlouf told a conference on 5 July that the euro "cannot yet replace the dollar’s dominant role" because the bloc still lacks full fiscal integration and a safe asset comparable to U.S. Treasuries. The alarm intensified in a 28 July ECB blog post that said dollar-linked stablecoins already command about 99 % of the roughly $250 billion token market, leaving euro-backed versions with a capitalization below €350 million. Widespread use of such tokens in the euro area could erode the ECB’s ability to steer money supply, the paper warned. ECB adviser Jürgen Schaaf added on 29 July that a forthcoming digital euro by itself "won’t challenge U.S. dollar stablecoin dominance," arguing the EU needs regulated, private-sector euro stablecoins to preserve monetary sovereignty. Across the Atlantic, BlackRock strategists said new U.S. legislation—the Genius Act—will solidify dollar leadership by giving issuers clear rules for dollar-pegged coins. The contrast underscores the ECB’s call for Europe to move quickly or risk deeper dependence on the greenback.