A senior European official explains that Europe faces financial threats from Trump administration backing of crypto assets.

According to Pierre Gramegna during a Monday Eurogroup press conference he expressed worry that US promotion of cryptocurrencies especially dollar-backed stablecoins threatens European monetary stability.

The U.S. government supports cryptocurrencies especially dollar-based stablecoins which create uncertainties for European economy. He stressed that this assistance would let tech companies from both America and abroad build large-scale USD-backed stablecoin payment systems to weaken Europe”s domestic monetary framework.

Trump’s crypto policies challenge European banking

The European Central Bank works to create a digital euro through its current projects. For several years the ECB has developed a central bank digital currency to battle the control that dollar-backed stablecoins hold over worldwide transactions.

Authorities plan to reveal digital euro details through their pilot program which will launch by middle-2025 and submit the draft rulebook in late-2025. In multiple statements ECB board member Piero Cipollone accelerated digital currency development given his belief Trump administration support for cryptocurrency will move more customers away from European banking.

Since starting his presidential run Trump has promoted the cryptocurrency business. Once in office he supported multiple executive plans that promote global development of dollar backed stablecoins. The President established Bitcoin as part of America”s fiscal reserves just last week through executive mandate.

Trump expressed his support for stablecoin legislation and said he would make signed the rules into law no later than August 2025. His federal policies make America lead digital finance globally while risking European nations self-rule in money matters.

European leaders step up their plans to launch the digital euro because they want to maintain control over their national economy.

Gramegna affirmed the ESM”s backing of ECB efforts to quickly develop the digital euro to defend European independence. The digital Europe requires greater urgency now more than before.

European leaders must choose their next steps due to growing financial competition across the world. The future success of the digital euro as a stablecoin rival to U.S dollar-backed platforms depends on how the situation evolves.