Last week, US President Donald Trump signed an executive order describing a digital currency strategy. EO, entitled “Strengthen American Leadership in Digital Financial Technology,” said the United States would promote legal and legitimate Dollar-supported Stablecoins worldwide.
In response, the European Central Bank (ECB) board member Piero Cipollone said that the euro area needs the digital euro. He described how Trump’s driving for dollar supported Stablecoins would further remove banks in Europe and elsewhere. Banks have expressed fear of losing deposits to the central bank’s digital currencies (CBDC) and Stablecoins, with some Warning about a collapse It would happen too fast.
Cipollone’s comments led to a wide range of answers to social media. Some agreed with the idea, while others said that the EU makes a mistake to try to provide a centralized, government-controlled solution rather than allowing the market to provide Euro Stablecoins products.
President Trump’s StableCoin agenda
There are several interesting points regarding Stablecoins in Thursday’s executive order.
First refer to it clearly to Legal and legitimate Dollar-supported Stablecoins. It is unclear if TetherThe largest StableCoin issuer after market fall, will make the cut. Tether has one Colorful storyIncluding several calls with the US law enforcement authorities. But Cantor Fitzgerald (Nasdaq: cfyxx) Chairman and CEO Howard Lutnick is Trump’s election for trade secretaries. His company bought a share of 5% in tether Over the past year and monitor his reserves, so he can turn things to its advantage.
Second, the EO president’s working group establishes in digital asset markets. It has the task of putting together a federal regulations to issue and operate digital assets, including Stablecoins. Finally, much -needed regulatory savings will come to the United States
Finally, Trump’s order poured cold water on CBDCS. Federal agencies are prohibited from establishing, issuing or promoting CBDC in the United States
More about the digital euro
Unlike the Trump administration’s approach to ban CBDCs and focus on providing a framework for the free market to work within, EU has already laid the foundation for a digital euro since 2020. The block sees it as a way to unite its fragmented payment system, facilitate effective cross -border transactions and make Pay for goods and services In the euro area easier.
After a two -year investigation phase, which ended in October 2023, the ECB launched the preparation phase in November. This second phase focuses on completing the rule book and choosing suppliers to build the necessary infrastructure.
From January 2025, the ECB tests the infrastructure of digital euro. With attempts to end in May, the world will soon know if digital euros will become reality. In any case, the Trump administration’s movements regarding USD-supported Stablecoins make it much more likely.
Interesting insight: In 2000, at the beginning of the new millennium, the US dollar accounted for 70% of Global currency reservesWhile euros accounted for 18%. Today, the US dollar accounts for 60%and euro accounts for 20%. With the rivalry between these two giants that are heated, there will be many consequences for payment technology and digital currencies in the coming years.
Look: Find ways to use CBDC outside digital currencies
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