Piero Cipollone, a Director of the European Central Bank (ECB), has reiterated that Trump’s discussions about the global use of US dollar stablecoins are prompting EU politicians to see the necessity for a digital euro central bank digital currency (CBDC) as increasingly urgent. He made the statements during a Reuters interview after making similar comments last week. With respect to Mr Cipollone, that’s a false and flawed narrative.
With the digital euro legislation as a work in progress, there’s a risk of people feeling pressured to agree to it, even if they have concerns. We’re not saying there aren’t arguments in favor of a digital euro, just that monetary sovereignty for retail payments is not one of them. It’s also worth exploring the different motivations of the U.S. and Europe when it comes to stablecoins. The EU regulators appear to view them as a threat, the US government sees them as an opportunity.
“My sense is that there is an increased sense of urgency because of the position that has been taken by the new US Administration. The fact that the US President went in so strong on this idea of promoting worldwide US dollar-denominated stablecoins obviously is a signal,” Mr Cipollone told Reuters.
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