European Union financial officials are concerned with the embrace of US President Donald Trump of digital assets can affect European financial sovereignty and financial stability.
“The US administration is desirable to cryptocurrencies and especially the dollar denomination stablecoins, which may raise some concerns in Europe,” the European stability mechanism (ESM) Managing Director Pierre Gramegna in an Eurogroup Press Conference on March 10.
Gramegna warned that the US crypto pivot “could reign in foreign and US tech giants plans to launch mass payment solutions based on the dollar Stablecoin denomination,” adding, “and if it would be successful, it could affect the monetary and financial area monetary and financial area.
The ESM “supports ECB’s easier production of digital euro which is a fact to protect European strategic autonomy – this digital euro is more necessary than ever,” he added.
The ESM is an intergovernmental organization established by the Euro Place Member States, helping countries overcome financial crises and maintain long -term stability and financial prosperity.
Pierre Gramegna speaks to the threat to US Crypto. Source: YouTube
“Policy development in other constituents may have important consequences for us here in Europe,” in conjunction with Ireland finance minister Paschal Donohoe.
“These discussions are starting to linked our own autonomy and the stability of our money,” he added, saying that a European Central Bank Digital Currency (CBDC) is now critical to stay ahead of the curve.
In February, the European Central Bank said it was Expansion The development of its CBDC payment system to resolve transactions between institutions. ECB has been Exploration of CBDCs Since 2020, it includes a retail facing consumer digital euro and wholesale cross-border settlement between central banks.
Meanwhile, Trump spoke against a Federal Reserve CBDC, Signing an executive order In January to establish a group working in the crypto while prohibiting the “establishment, release, circulation, and use” of a US CBDC.
Related: Crypto Academics slam controversial ECB paper exploding in bitcoin
ECB is also there The idea was rejected of adding bitcoin (Btc) in its reserves or allowed other European central banks to do so.
In late January, ECB president Christine Lagarde said the central banks’ reserves need to be “liquid, safe and safe,” indicating that they will not include crypto assets.
He added that he was “confident” that Bitcoin would not enter the reserves of banks under the European Council.
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