Europe’s reliance on US payment systems is already a concern for the ECB with Cipollone urging lawmakers to act fast before American stablecoins dominate European transactions.
European lawmakers have until November to finalize digital euro plans.
The European Central Bank (ECB) is facing increasing pressure to accelerate the rollout of its digital euro, with board member Piero Cipollone suggesting that President Donald Trump’s pro-crypto stance could serve as a wake-up call for European lawmakers.
Trump’s support for US dollar-pegged stablecoins — which could further entrench American dominance in global payments — has raised concerns within the ECB, adding urgency to Europe’s efforts to establish its own central bank digital currency ().
Could US Stablecoins Replace the Euro in Europe?
During his last presidency, Trump was hostile toward cryptocurrencies, but his recent shift toward supporting stablecoins — digital assets pegged to the US dollar — has caught the attention of European policymakers.
Stablecoins, like those issued by Tether and Circle , have already gained significant traction in global finance. If the US government under Trump strengthens their regulatory framework and promotes their adoption, it could lead to widespread use of US-backed digital assets across Europe.
Cipollone warns that this scenario would introduce another US-controlled payment system into Europe, similar to how , , and dominate electronic transactions. According to him, this could weaken Europe’s ability to control its financial infrastructure, as more transactions would be settled in US dollars rather than euros.
“If people in Europe start to use stablecoins to pay, given that most of them are American and dollar-based, they will be transferring their deposits from Europe to the United States,” Cipollone Reuters in an interview on Wednesday.
Will Europe Act before It’s Too Late?
The European Commission proposed a digital euro legislation in June 2023, aiming to create a central bank-backed digital currency that would serve as a secure and independent alternative to private-sector payment providers.
However, the project has faced from lawmakers and banks, delaying its progress. Banks have raised concerns that a digital euro could draw deposits away from commercial banks if consumers move their funds to an ECB-backed wallet, potentially affecting lending and financial stability.
To mitigate these risks, the ECB has suggested placing a cap on digital euro holdings and ensuring they do not earn interest. Despite these concerns, Cipollone believes that Trump’s crypto-friendly stance could shift the political landscape, prompting European lawmakers to take faster action to ensure the EU does not fall behind.
“The political world is becoming more alert to this. And it’s possible that we will see an acceleration in the process,” he told Reuters.
He hopes the European Parliament and Council will finalize digital euro legislation before the summer, allowing negotiations with the Commission to conclude by November when ECB policymakers are expected to vote on whether to launch the digital euro.