With the U.S. dollar's decline amid market volatility, investors are looking for alternatives, potentially leading to a rise in EUR-based stablecoins by 2028. The dollar weakened significantly due to unpredictable policies under the Trump administration, prompting global central bankers to explore assets like gold, the renminbi, and the euro as alternatives to the dollar. While USD-pegged stablecoins currently dominate the market, the improving strength of the euro and the EU's supportive regulatory stance towards crypto could boost the presence of euro-pegged stablecoins. The EU's recent MiCA framework provides a favorable environment for crypto issuers, contrasting with the U.S.'s more precarious stance. By the end of Trump’s term, a significant increase in EUR-pegged stablecoins is anticipated, suggesting that they could challenge the dominance of their USD counterparts amidst ongoing recession risks and investor confidence issues with the dollar.

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