European Union finance officials have expressed concern about U.S. President Donald Trump's favorable stance on cryptocurrencies, fearing it could threaten Europe's financial stability and monetary sovereignty.
EU's Concerns
Pierre Gramegna, managing director of the European Stability Mechanism, raised concerns during a press conference about the U.S. administration’s crypto-friendly stance, warning that it could encourage American tech giants to create large-scale payment solutions using dollar-backed stablecoins, potentially jeopardizing the financial independence of the euro area.
Support for Digital Euro
Gramegna reiterated ESM’s support for the ECB’s urgency in making the digital euro a reality to safeguard Europe’s strategic autonomy, stating, "The ESM supports the ECB’s urgency in making the digital euro a reality to safeguard Europe’s strategic autonomy."
Tensions Amidst U.S. Policies
Irish Finance Minister Paschal Donohoe emphasized the broader implications of these discussions for the autonomy and resilience of the European currency, noting, "These discussions are fundamentally linked to our autonomy and to the resilience of our currency."
The European Central Bank continues to develop digital euro initiatives, focusing on the importance of implementing a digital currency to support the economy, while U.S. crypto-friendly policies raise concerns in Europe.
