The EU is concerned about the US crypto course-is the financial stability endangered?
- The EU is increasingly concerned about Donald Trump’s recent actions for integrating cryptocurrencies into the US financial system.
- So far, Trump has enforced his Bitcoin reserve and the facilitation of bank access for crypto companies.
The growing support of the United States for cryptocurrencies causes concern in Europe. On one Press conference the Eurog group On March 10, Pierre Gramegna, Managing Director of the European Stability Mechanism (ESM), warned that Donald Trump’s pro-crypto posture could bring considerable risks to the financial sovereignty of Europe.
Gramegna emphasized that the crypto-friendly attitude of the US government could encourage foreign and local tech giants to expand mass payment solutions with stable coins denominated in dollars. He added: “And if this were successful, it could affect currency sovereignty and the financial stability of the euro area.”
Stable coins coupled to the US dollar have already consolidated their place in the global financial system, with a market capitalization of over $ 224 billion and a transaction volume of over $ 4 trillion in the last $ 30 days. These numbers underline their increasing role as a dominant instrument in cross -border payments and digital finance.
In order to counteract the growing influence of dollar-based stable coins, the European Central Bank (ECB) increases its efforts to introduce a digital euro by 2028. ECB directorate member Piero Cipollone emphasized that Trump’s support for cryptocurrencies coupled to the US dollar makes the digital euro project even more urgent to preserve the strategic autonomy of Europe compared to global payment systems.
Trump’s crypto initiatives
President Donald Trump’s crypto strategy picked up speed on January 23 with an important political turn. On this day, he signed a implementation regulations that prohibited federal authorities to introduce a digital currency of the US Central Bank (CBDC), while at the same time outlined a framework for the promotion of dollar-supported stable coins at global level.
During the Digital Assets Summit of the White House on Friday last week, finance minister Scott Bessent confirmed the government’s vision for digital finance and explained:
“We will receive the US dollar as a dominant reserve currency in the world, and we will use stable coins to achieve this.”
As CNF reportedTrump will also reverse bidens cryptofo -one policy through a further implementing regulation. This step is primarily aimed at “Operation Chokepoint 2.0”, a controversial initiative that supposedly restricted the access of crypto companies to banking services. Trump went even further and has signed a implementing regulations for the establishment of a strategic Bitcoin reserve. The plan provides to accumulate Bitcoin with household -neutral strategies by using digital assets that have been confiscated in legal proceedings to build up the state’s own stocks.
In the meantime, the European Central Bank Bitcoin continues to strictly reject Bitcoin as a reserve currency. ECB President Christine Lagarde has confirmed that central bank reserves must be “liquid, safe and protected”, which means that Bitcoin does not meet these criteria.
But the tensions between the USA and the EU go beyond crypto policy. Trump has plans for Introduction of tariffs of 25 % On EU goods announcedwhereby he focuses in particular on the automotive sector. This step threatens to exacerbate transatlantic economic friction and complicates Europe’s ability to control Donald Trump’s influence in digital finance.
Bitcoin is currently being traded at $ 81,339, which means a slight decline of 0.56 % over the course of the last day.
No Comments