ECB Urges for Digital Euro

Following President Donald Trump’s recent push to promote stablecoins pegged to the US dollar, European Central Bank (ECB) executive board member Piero Cipollone has raised concerns about the potential impact on the traditional banking system.

With the promotion of these stablecoins potentially drawing customers away from traditional banks, Cipollone argues that the ECB should prioritize the launch of a digital euro to safeguard Europe’s financial stability and the relevance of its financial institutions.

Additionally, Trump’s executive order also restricts the Federal Reserve from launching a central bank digital currency, further shaping the global financial market and the role of digital currencies.

However, the final decision on the digital euro’s launch depends on upcoming European legislation.