Eurozone finance ministers have voiced apprehensions that the U.S. administration's favorable stance on cryptocurrencies, particularly dollar-backed stablecoins, could undermine the euro area's monetary sovereignty and financial stability. This sentiment was echoed during a recent meeting in Brussels, where officials deliberated on the potential ramifications of America's crypto policies on Europe's economic landscape.​‍

According to Pierre Gramegna, Managing Director of the European Stability Mechanism (ESM), the U.S. administration's support for cryptocurrencies, especially dollar-denominated stablecoins, may raise certain concerns in Europe. He highlighted that such developments could affect the euro area's monetary sovereignty and financial stability.

The European Central Bank (ECB) has been exploring the concept of a digital euro since 2021, with a final decision on its implementation expected later this year. The ECB's urgency in making the digital euro a reality is seen as a measure to safeguard Europe's strategic autonomy in the face of evolving global financial technologies.

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In January, President Trump issued an executive order promoting U.S. dollar-pegged stablecoins, aiming to strengthen the international role of the dollar by promoting stable, legal, and legitimate dollar-backed currencies worldwide. This move has raised concerns among European officials about potential negative consequences on the stability and sovereignty of the euro.

The ECB hopes that the U.S. administration's support for cryptocurrencies will accelerate the legislative process for the digital euro. ECB board member Piero Cipollone emphasized that Trump's plan could add urgency to the digital euro project as it promotes another U.S.-made payment tool. The European Commission proposed digital euro legislation in June 2023, but progress has stalled due to skepticism from lawmakers and bankers.

The discussions among eurozone finance ministers underscore the delicate balance between embracing financial innovation and preserving economic sovereignty. As the global financial landscape continues to evolve with technological advancements, European leaders are keenly aware of the need to adapt while safeguarding the stability and integrity of the eurozone's monetary system.​