The post ECB Proposes Digital Euro To Counter Donald Trump Stablecoin Advancements appeared on BitcoinEthereumNews.com.
US President Donald Trump’s highly anticipated crypto-focused executive order has triggered a significant buzz in the community. The order outlines a broader crypto strategy, with a key focus on promoting dollar-backed stablecoins. However, the European Central Bank (ECB) proposed a digital euro to counter the President’s stablecoin plan. ECB Seeks To Counter Trump’s Stablecoin Plan with Digital Euro According to a Reuters report, the ECB seeks to tackle the potential consequences of Trump’s stablecoin strategy. While Trump prohibits the development of central bank digital currencies (CBDCs), the ECB proposes to introduce a digital alternative to the euro. In response to Trump’s executive order to develop a national digital asset stockpile, ECB board member Piero Cipollone highlighted the significance of introducing a digital euro. He posited that Trump’s stablecoin plan would lure customers away from traditional banks. Further pointing out that the program could only strengthen the US dollar’s global dominance, Cipollone added, I guess the key word here (in Trump’s executive order) is worldwide. This solution, you all know, further disintermediates banks as they lose fees, they lose clients…That’s why we need a digital euro. Digital Euro’s Future: Banks Raise Concerns Despite the ECB’s digital euro initiative, banks raise concerns about its impact on them. They fear that the introduction of a digital euro could push customers to move their money from traditional banks to ECB-guaranteed digital wallets. This could potentially deplete bank deposits, draining their reserves. Currently, the central bank is analyzing the potential implications of the asset. Though the ECB has announced its interest in launching a digital euro, a final decision is subject to the European lawmakers’ approval. This happens on the heels of discussions surrounding banks’ acceptance of crypto payments and other trading services. Experts like Circle CEO Jeremy Allaire believe that the Trump administration will…