ECB Pushes for Digital Euro in Response to Trump’s Stablecoin Push
In the latest development, Piero Cipollone, a member of the Central Bank of the Central Bank, said that the euro zone bank needs digital euro to resist US President Donald Trump to promote Stablecoins, which is usually linked to the US dollar.
Trump said he will promote the development and growth of Stablecoins, which is legal and legal, and is part of the broader crypto strategy he outlined in his administrative order on Thursday.
Derived from ReutersCipollone explained that Trump focuses on promoting StableCoins worldwide, which may keep more customers away from traditional banks. He emphasized that this caused the European Central Bank (ECB) to launch its own digital currency and digital euro as a response to this growing trend, which makes the case stronger.
“I think the keywords here (according to Trump’s administrative order) are global,” Siparon said at a meeting held in Frankfurt. He said: “Everyone knows that this solution has further deleted the bank when the loss costs, and they lose our customers … This is why we need digital euro.”
Digital euro may affect bank funds
Banks are worried that digital euros may cause customers to transfer money to wallets supported by the European Central Bank, thus exhausting funds. The Central Bank of Europe is still testing the operation of digital euro, but once European legislators approve the legislation on this matter, they will make the final decision to launch.
At the same time, Trump’s administrative order also prevented the Fed from issuing its own central bank digital currency (CBDC).
A comparison method
Discussions around banks receiving encrypted payment and trade services are increasing. Experts including Circle CEO Jeremy Allaire believe that the Trump administration will promote partnership between banks and crypto platforms, making cryptocurrency transactions easier to use.
Donald Trump signed an administrative order to establish a national digital asset inventory, while the Presidential Working Group of the Digital Asset Market was responsible for creating a supervision framework for cryptocurrency, including Stablecoins.
Trump emphasizes the promotion of stable currency supported by the US dollar globally while opposing the central bank’s digital currency (CBDC). At the same time, the European Central Bank (ECB) is exploring digital euros, which is in sharp contrast to Trump’s methods.
