Senior European Union Official: Trump's Policies in Support of Digital Assets Could Affect European Monetary Sovereignty and Financial Stability

Speaking at a Eurogroup press conference, Pierre Gramegna, managing director of the European Stability Mechanism (ESM), said US President Donald Trump's policies in favour of digital assets could affect European monetary sovereignty and financial stability. "The US government's supportive attitude towards cryptocurrencies, particularly US dollar-denominated stablecoins, could raise certain concerns in Europe," Gramegna warned. "This could re-energize the plans of foreign and US tech giants to launch large-scale payment solutions based on US dollar stablecoins. If successful, these plans could affect monetary sovereignty and financial stability in the eurozone."
Irish Finance Minister Paschal Donohoe agreed, saying that "policy developments in other jurisdictions may have important implications for Europe," and stressed that the European Central Bank's digital currency (CBDC) is essential to remain competitive. Meanwhile, Trump has explicitly opposed the Federal Reserve's issuance of CBDCs, and in January this year signed an executive order establishing a cryptocurrency working group, while prohibiting the "establishment, issuance, circulation and use" of US CBDCs. The European Central Bank has also refused to include bitcoin in its currency reserves.