Here’s How Trump Could Speed Up The Launch Of The Digital Euro!

The crypto program of Donald Trump could have significant repercussions on the acceleration of the development of the digital Euro, according to Piero Cipollone, member of the European Central Bank (ECB). He expresses hope that the Parliament and the Council of the European Union manage to finalize discussions on the legislation governing the digital euro by the summer of 2025.

Trump’s crypto plan could change everything for the digital Euro

The digital Euro aims to provide a secure and accessible means of payment for all, while ensuring the stability of the banking system. However, the United States could take the lead if a regulatory framework more favorable to cryptos were established under the Trump administration. This perspective prompts the ECB to accelerate its efforts to deploy a credible and competitive European alternative.

However, Piero Cipollone highlights a growing issue: the rise of American stablecoins, such as USDT and USDC, as means of payment. He considers this trend “concerning,” as it could lead to a transfer of deposits from European banks to these stablecoins, thereby compromising the stability of the traditional banking system in Europe.

According to him, there is a risk that consumers may prefer to keep their money in the form of stablecoins rather than in regulated bank accounts, which could have adverse consequences on the liquidity and solvency of European banks. Nevertheless, the preparation phase for this ambitious project is scheduled to conclude in November 2025. At that point, the ECB will conduct tests to assess the feasibility of an effective deployment of the digital Euro.

Is fiat currency in danger?

The necessity of a digital currency in Europe is thus accentuated by the rise of cryptos and stablecoins, which challenge the traditional role of fiat currencies. The digital Euro could provide a secure and stable alternative for everyday transactions, while allowing the ECB to maintain a certain control over monetary policy in an increasingly digitized environment.

As the shadow of Trump’s crypto program looms over Europe, the ECB is preparing to face this challenge with the introduction of the digital Euro, a crucial step to ensure the competitiveness and stability of the European financial system in the digital age.