EU official says Trump's crypto support may damage Europe's monetary sovereignty
An EU official said Monday that the U.S. government's support of cryptocurrencies under President Donald Trump is potentially detrimental to Europe's monetary autonomy. "The US administration is favorable towards cryptocurrencies and especially dollar-denominated stablecoins, which may raise certain concerns in Europe," European Stability Mechanism's Managing Director Pierre Gramegna said during a press conference following a Eurogroup meeting Monday.
Gramegna added that the U.S. support could eventually lead U.S. and foreign tech giants to launch mass payment solutions based on USD stablecoins — the success of which may disrupt Europe's monetary sovereignty and financial stability.
ESM is an intergovernmental institution that provides financial assistance to member states facing financial crises. It is aimed at protecting the Eurozone's long-term financial stability.
The European Central Bank has worked for several years to establish the digital euro to compete with dollar-backed stablecoins. According to its official website, the ECB plans to set out details for piloting and rolling out the digital euro in Q2 of this year — and have the draft rulebook for the digital currency in Q3.
ECB board member Piero Cipollone previously urged the need to accelerate digital euro efforts to counter Trump's promotion of dollar stablecoins being used globally. Cipollone warned that the Trump administration may further attract customers away from traditional banks.
Since his election campaign, Trump has endorsed the crypto sector. After becoming U.S. President, Trump has signed several pro-crypto executive orders, including one aimed at supporting the growth of dollar-backed stablecoins worldwide. Last week, Trump signed an order to create a strategic bitcoin reserve and digital asset stockpile. He said that he hopes to sign legislation on stablecoins by August.
"The ESM supports the European Central Bank's urgency in making the digital euro a reality to safeguard Europe's strategic autonomy," Gramegna said Monday. "This digital Europe is today more necessary than ever."
