Trump and Stablecoins: A Threat to Europe's Financial Sovereignty?
Date: 2025-03-13 Author: Henry Casey Categories: CRYPTO PAYMENTS
The head of the European Stability Mechanism (ESM) Pierre Gramegna has expressed concerns about the implications of US cryptocurrency policy for Europe. According to him, increased support for dollar-pegged stablecoins could lead to the dominance of US and international tech corporations in the digital payments sector, which could undermine the region's financial stability and weaken its monetary sovereignty.
To counter this trend, the European Central Bank (ECB) has been working for several years on a digital euro, which should become a competitive alternative to stablecoins. The final details of the digital currency testing are scheduled for publication in the second quarter of 2025, with regulatory standards expected to be published by the third quarter.
Gramegna stressed that the ESM fully supports the accelerated implementation of the digital euro, as Europe's strategic autonomy is under threat. The ECB has also previously stated the need for a quick launch of the project, as Trump's course on the global expansion of dollar stablecoins could lead to an outflow of clients from the European banking sector.
Despite the potential benefits of using stablecoins, Gramegna noted that they remain a high-risk instrument. He emphasized that such digital assets can take a significant place in the global financial system, but require strict regulation.
Since returning to the White House, Trump has signed a number of executive orders aimed at developing the crypto industry. Among them are a strategy to support stablecoins and an initiative to create a strategic reserve of digital assets. In addition, he expressed hope that a law regulating the use and circulation of stablecoins will be adopted by August.
