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While Trump supports cryptocurrencies, the EU is relaunching CBDCs
By Davide Grammatica
Trump's support for Bitcoin and stablecoins could have a paradoxical effect in the EU, with a rush towards CBDCs and the digital euro
CBDC: a never-ending issue in the EU
Trump has opened a new era for cryptocurrencies, in terms of adoption and institutional support. In Europe the trend seems to be different and, paradoxically, Trump’s approach could become an obstacle to the (already difficult) development of the sector in the Old Continent.
At least, this is how it can be interpreted from the words of Piero Cipollone, member of the ECB Executive Board, who in a recent interview with Reuters expressed the hope that work on the legislation for a digital euro would be completed before summer 2025.
The initiative would be a “response” to the “worrying” development of dollar-based stablecoins, as a means of payment that risks taking deposits away from European banks.
“The political world is becoming more aware of all this,” said Cipollone. ”And it is possible that we will see an acceleration of the process.”
The reasoning is simple: a European consumer might prefer to keep their funds in stablecoins rather than in a traditional bank account, and this is a problem for the ECB.
The ECB and cryptocurrencies
Trump’s proposal in the US, where work is already underway on new legislation on stablecoins, is diametrically opposed: Trump has promised to “protect and promote the sovereignty of the US dollar” precisely through the development of the stablecoin sector, to strengthen its global dominance.
The development of a European central bank digital currency (CBDC) began several years ago, in 2021, and has been under discussion ever since. The preparatory phase of the project, however, is expected to be completed in November 2025.
For Cipollone, the EU doesn’t need to depend more than it already does on the US, and stablecoins risk worsening this situation. This position is similar to that of the ECB’s leaders, who don’t seem to want to take a favorable stance on Bitcoin and the crypto industry.
