ECB official says U.S. stablecoin expansion raises urgency for a European alternative.
ECB Eyes Faster Digital Euro Rollout
The European Central Bank hopes U.S. President Donald Trump’s endorsement of dollar-backed stablecoins will accelerate legislative support for the digital euro, according to ECB board member Piero Cipollone.
Stablecoins Raise EU Banking Concerns
Cipollone warns that dollar-based stablecoins could shift European bank deposits to the U.S., increasing pressure to establish a digital euro as an independent payment system.
Legislative Progress Expected by Summer
The European Commission proposed digital euro legislation in 2023, but progress has stalled. ECB officials hope lawmakers will finalize the framework by November, just before the ECB’s decision on launching the digital currency.
A Global CBDC Race
Over 44 countries, including China and Brazil, are running digital currency pilots. While the ECB moves toward a digital euro, Trump has prohibited a U.S. central bank digital currency (CBDC).
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