12.03.2025 01:14
Pierre Gramegna, the Director General of the European Stability Mechanism, warned that the support given by the administration of U.S. President Donald Trump to cryptocurrencies, particularly dollar-based stablecoins, could potentially harm Europe's monetary autonomy. As the European Central Bank prepares to respond to this threat with the digital euro project, a new front is opening in the global digital currency competition.
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After the Eurogroup meeting held on Monday, Gramegna, speaking at a press conference, emphasized that the development of dollar-based stablecoin-based mass payment solutions by American and foreign technology giants could jeopardize Europe's monetary sovereignty and financial stability. Trump's crypto-friendly policies, the strategic move to create a Bitcoin reserve, and the decrees promoting stablecoins threaten Europe's position in digital currencies.
Trump's Support for Stablecoins Challenges the European Financial System
Pierre Gramegna, the Managing Director of the European Stability Mechanism (ESM), expressed the risks posed by the cryptocurrency policies of the Trump administration for Europe.
Gramegna stated at the press conference following the Eurogroup meeting, "The U.S. administration is showing a positive attitude towards cryptocurrencies, especially dollar-based stablecoins, which could lead to certain concerns in Europe."
ESM is an intergovernmental institution aimed at maintaining the long-term financial stability of the Euro area. Gramegna's warning highlights the increasing importance of digital currencies in the global economy.
The European Central Bank (ECB) has been developing a digital euro for years to compete with dollar-backed stablecoins. According to the bank's official statement, details for a pilot application of the digital euro will be determined in the second quarter of this year.
ECB board member Piero Cipollone had previously stated that efforts to accelerate the digital euro should be intensified to counter Trump's promotion of global dollar stablecoins.
Since his election campaign, Trump has supported the crypto sector and signed various decrees aimed at promoting the growth of dollar-backed stablecoins after becoming president. Last week, he took a new step to create a strategic Bitcoin reserve.
Gramegna also stated, "ESM supports the urgency of the European Central Bank to turn the digital euro into reality to preserve Europe's strategic autonomy. This digital Europe is more necessary today than ever."
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