EU Fears US Stablecoins Could Destabilize the Euro
The European Stability Mechanism (ESM) has raised concerns that the growing support for US dollar-backed stablecoins could threaten Europe’s financial stability and monetary sovereignty.
These concerns are Stablecoin Regulation gains traction in the United States. The National Bank and the Federal Savings Association may provide services without regulatory prior approval.
EU warns us Stablecoins could threaten euro stability
Pierre Gramegna stressed the urgency of the European Central Bank (ECB) digital euro initiative, a countermeasure. As managing director of ESM, Gramegna urged Expedition to retain the country’s monetary sovereignty and financial stability.
“It could eventually reignite plans from foreign and American tech giants to launch large-scale payment solutions by USD-based stabilizers. And, if it is to be successful, it could impact the eurozone’s monetary sovereignty and financial stability,” Gramegna statement at the euro group meeting.
The EU is advancing its digital euro project to protect its financial independence. The ECB has long warned that stable stocks relying on U.S. support would weaken the euro.
He responded to recent remarks by ECB official Piero Cipollone in an interview in early February. Cipollone then said the Trump administration’s support for Stablecoins could accelerate legislation around the digital euro. Such a result, he said, positioned it as a necessary option.
“The United States and Europe have different views on Stablecoins. The Trump administration sees them as tools to strengthen the global presence of the dollar, while the ECB is concerned that they will undermine the stability of the European financial system,” cipollone.” Explained.
ESM supports ECB’s digital euro project and EuropeThe Commission’s efforts to revise mica (The market for crypto assets)instruction. Gramegna stressed that these measures are crucial to prevent European consumers and businesses from relying too much on stable stablecoins supported by the United States.
Indeed, these concerns are due to the increasing number of U.S. governments Like encryptionspecial Fixed symbol fixed in US dollars. Fed Gov. Christopher Waller recently asserted that Stablecoins can Enhance the global role of the dollar.
Fed Chairman Jerome Powell also advocates stability regulations Strengthen their role in the financial market. at the same time, New rules now allow U.S. banks To provide Stablecoin services, please issue a stablecoin to further integrate into traditional finance (TradFI).
These developments could accelerate the dominance of US-backed stabilizers in global transactions. Reports show that even Bank of America (BOA) is exploring Launch your own stabilityCircle CEO Jeremy Allaire is pushing Mandatory US registration Stablecoin issuer.
The debate about Stablecoins reflects a broader reflection Geopolitical issues. The dollar’s dominance in digital payments is likely to grow as U.S. financial institutions integrate Stablecoins into their services. This may limit the influence of the euro.
European policymakers advocate a strong regulatory framework and an accelerated timetable for the digital euro to counter this.
Disclaimer
persist in Trust Project Guide Beincrypto is committed to impartial, transparent reporting. This news article is designed to provide accurate and timely information. However, readers are advised to independently verify the facts and consult a professional before making any decisions based on this content. Please note that our terms and Conditions,,,,, Privacy Policyand Disclaimer Updated.
