Donald Trump's Crypto Program could have significant repercussions on accelerating the development of the digital euro, according to Piero Cipollone, member of the European Central Bank (ECB). The latter expresses the hope that the Parliament and the Council of the European Union manage to finalize the discussions on the legislation framing the digital euro by the summer of 2025.
Trump's crypto plan could change everything for the digital euro
The digital euro aims to offer a safe payment and accessible to everyone, while guaranteeing the stability of the banking system. However, the United States could take a head start if a regulatory framework more favorable to cryptos was set up under the Trump administration. This perspective therefore pushes the ECB to accelerate its efforts to deploy a credible and competitive European alternative.
However, Piero Cipollone highlights an increasing problem: the rise of American stablecoins, such as the USDT and the USDC, as means of payment. He considers this trend as “worrying” because it could lead to a transfer of deposits from European banks to these stablecoins, thus compromising the stability of the traditional banking system in Europe.
According to him, There is a risk That consumers prefer to keep their money in the form of stablecoins rather than on regulated bank accounts, which could have harmful consequences on the liquidity and solvency of European banks. Anyway, the preparation phase of this ambitious project is planned to end in November 2025. At that time, the ECB will carry out tests in order to assess the feasibility of an effective deployment of the Digital euro.
Fiat currency in danger?
The need for a digital currency in Europe is therefore accentuated by the rise of cryptos and stablecoins, which question the traditional role of Fiat currencies. The digital euro could offer a secure and stable alternative for daily transactions, while allowing the ECB to maintain some control over monetary policy in an increasingly digitized environment.
While the shadow of Trump's Crypto program hovers over Europe, the ECB is preparing to take up this challenge with the introduction of the digital euro, a crucial step to guarantee the competitiveness and stability of the European financial system to the 'digital age.
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