Following a meeting of the Eurogroup of EU finance ministers yesterday, participants promoted the idea that there’s now an urgent need for a European central bank digital currency (CBDC), or digital euro, because Donald Trump wants dollar stablecoins to proliferate worldwide.
While there are valid concerns about monetary sovereignty, several other options exist (see below) to address concerns other than a CBDC.
In fact, the EU’s MiCA regulations and the digital euro were initiated following monetary sovereignty threats from Facebook’s Libra stablecoin. As a result, MiCA includes sovereignty protections, limiting the scale of any single foreign stablecoin for everyday payments. We previously highlighted this when ECB Director Piero Cipollone made similar comments.
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