Europe Races to Launch Digital Euro as Trump Backs USD Stablecoins
ECB Warns of U.S. Crypto Influence Amid Trump's Pro-Stablecoin Policies
The European Central Bank (ECB) is accelerating its digital euro initiative as concerns grow over President Donald Trump’s endorsement of USD stablecoins. ECB board member Piero Cipollone recently stressed the urgent need to push forward with a central bank digital currency (CBDC) to prevent the dominance of dollar-backed stablecoins in global financial systems.
Since taking office, Trump has introduced several pro-crypto executive orders, including one aimed at expanding the reach of dollar stablecoins worldwide. His most recent move—the creation of a strategic Bitcoin reserve and digital asset stockpile—has further reinforced his administration’s commitment to the sector. Trump has also stated that he aims to sign stablecoin legislation by August, a move that could solidify the U.S. position in the global digital currency race.
European Leaders Sound the Alarm on Financial Sovereignty
European policymakers are increasingly wary of the potential consequences of USD-backed stablecoin expansion. On Monday, Pierre Gramegna, Managing Director of the European Stability Mechanism (ESM), emphasized that Trump’s policies could undermine Europe's financial independence.
"The US administration is favorable towards cryptocurrencies and especially dollar-denominated stablecoins, which may raise certain concerns in Europe," Gramegna warned after a Eurogroup meeting.
He also noted that big tech companies could soon launch mass payment solutions based on USD stablecoins, leading to a significant shift away from the euro and potentially disrupting financial stability across the region.
ECB’s Digital Euro Strategy Gains Urgency
In response to these concerns, the ECB has accelerated its plans for a digital euro. The goal is to create a viable alternative to dollar-backed stablecoins, ensuring that Europe's financial infrastructure remains competitive.
According to the ECB's latest roadmap:
📌 The digital euro pilot phase will begin in Q2 of 2025.
📌 A detailed rulebook for implementation will be finalized in Q3.
📌 Full-scale deployment will follow based on market conditions and regulatory approval.
As the digital euro gains momentum, Europe’s strategic autonomy remains a key focus, with policymakers emphasizing the need to ensure financial independence from the U.S. and other global players.
