Trump’s Crypto Push Could Threaten Europe’s Financial Stability
Euro chiefs are warning that Donald Trump’s pro-crypto stance could blow up the eurozone.
At a March 10 Eurogroup press conference, Pierre Gramegna, Managing Director of the European Stability Mechanism (ESM), said dollar-denominated stablecoins could chip away at Europe’s monetary sovereignty.
“The US administration’s support for cryptocurrencies, especially stablecoins pegged to the dollar, is a problem for Europe,” Gramegna said. He warned if US tech and financial giants roll out large scale stablecoin based payment solutions the euro could be threatened.
https://twitter.com/MetaEraHK/status/1899343741665878292
To counter this risk Gramegna said the ECB’s digital euro project is more necessary than ever to protect Europe’s financial independence.
European Finance Ministers Push for Digital Euro
Irish Finance Minister Paschal Donohoe echoed these concerns saying US policy shifts could have huge implications for Europe. He said Europe must act quickly to strengthen the euro by accelerating the development of a central bank digital currency (CBDC).
ECB has been researching a digital euro since 2020
In February 2025 the ECB expanded its CBDC development to support institutional transactions
A retail focused digital euro is also being explored for consumer payments.
Meanwhile Trump has taken a different approach. In January 2025 he signed an executive order banning the Fed from issuing a digital dollar and set up a crypto focused working group to shape US policy.
https://twitter.com/NorqueNoq/status/1899333156106355177
ECB Rejects Bitcoin as Reserve Asset
Despite institutional adoption of Bitcoin growing the ECB remains opposed to adding BTC to its reserves. In January 2025 ECB President Christine Lagarde said central banks need “liquid, secure and safe” assets — and that excludes cryptocurrencies.
The ECB has consistently dismissed Bitcoin’s role in official reserves
Lagarde stated she was “confident” Bitcoin would not be included in European banking reserves
As US crypto policies go in a different direction, officials are focusing on the digital euro to maintain financial stability. But with stablecoins spreading worldwide, the eurozone has to adapt or risk being left behind in the digital age.
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