EU Pushes for Digital Euro to Counter U.S. Stablecoin Growth
The European Union is moving forward with plans to introduce a digital euro in response to the growing influence of U.S.-backed stablecoins, spurred by the Trump administration’s push for dollar-pegged digital currencies.
As part of his executive order, Trump has focused on promoting dollar-backed stablecoins globally while rejecting the creation of a U.S. central bank digital currency (CBDC), citing concerns over financial stability and privacy. In contrast, the European Central Bank (ECB) is considering a digital euro to maintain its role in traditional banking, as ECB board member Piero Cipollone warns that the rise of stablecoins could undermine the banking system by reducing fees and clients.
Stablecoins like Tether (USDT) have already reached a market cap of $213 billion, highlighting their growing importance in the global financial ecosystem.
Clever Robot News Desk 27th January 2025
