European Stability Mechanism (ESM) Managing Director Pierre Gramegna said that President Donald Trump’s favorable attitude towards Crypto, in particular by dollars, could challenge the monetary autonomy of Europe, Bloomberg News reported on 10 March.
Gramegna warned that the changing American attitude could encourage both foreign and American technology companies to pursue large-scale payment solutions with the help of dollar-bound Stablecoins.
He added:
“And if this were successful, this could influence the monetary sovereignty and financial stability of the euro area.”
US Dollar-Pegged Stablecoins have a combined market capitalization of more than $ 224 billion and play an important role in global finances, according to Artemis more than $ 4 trillion in the course of the $ 4 trillion facts.
Speed up the digital euro
In response to these concerns, the ESM supports the accelerated efforts of the European Central Bank (ECB) to develop and implement a digital euro.
It corresponds to the comments from ECB board member Piero Cipollone from January 24, when he said the central bank Must speed up the push for the digital euro To respond to Trump’s push to promote dollar-stunned stablecoins worldwide.
Cipollone’s comments followed the First crypto-related executive order signed By the US President on January 23. This order prohibited federal agencies to pursue a digital currency from the Central Bank (CBDC) and laid a framework to strengthen the approval of dollar-supported Stablecoins worldwide.
Gramegna emphasized the urgency of the initiative and stated that a European CBDC is essential for maintaining financial autonomy and stability in the region. The decision on the digital euro will be an important moment in Europe’s strategy to navigate through the developing global landscape of digital assets.
Trump Executive Orders
Last week the Trump administration deepened his efforts in the crypto industry by signing a second executive order that sets up a strategic Bitcoin (BTC) reserve and a digital assets stock.
The safes will take crypto in legal proceedings and will be managed by the treasury. The reserve will serve as a long -term company, where the treasury is instructed to collect more Bitcoin in a budget -neutral way.
Trump has also indicated that Stablecoins will be a fundamental part of the economic plan of America to ensure that the US dollar maintains its dominance as the global reserve currency.
The ECB, on the other hand, remained strong in its rejection of Bitcoin as a reserve. During a speech for members of the central bank, ECB President Christine Lagarde said that reserves should be liquid, safe and safe and should not be “plagued by the suspicion of money laundering or other criminal activities”.
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