Show of Strength via Cryptocurrencies: EU Launches Attack Against Post-Trump US! - Coin Bulletin

ECB Executive Board Member Piero Cipollone emphasized the need to implement the digital euro as soon as possible, stating that Trump's dollar-backed stablecoin initiatives pose a threat to European banks.

European Central Bank (ECB) Board Member Piero Cipollone expressed that Eurozone banks need digital euro, otherwise they may be influenced by the efforts of US President Donald Trump to promote dollar-backed stablecoins worldwide.

Cipollone assessed the global financial impact of Trump's latest move at a policy meeting in Frankfurt.

Last Thursday, President Trump signed an executive order aimed at strengthening U.S. leadership in digital financial technologies. The decree includes provisions that include "taking steps to protect and promote the sovereignty of the U.S. dollar, and to develop and grow legal and legitimate dollar-backed stablecoins."

Speaking at the 13th Future of the Financial Sector Conference held in Frankfurt, Cipollone pointed out that this move by the Trump administration could increase customer losses from traditional banks.

According to Reuters, Cipollone said, "The key phrase in Trump's decision, as you all know, is 'worldwide.' This situation leaves banks more sidelined; they lose their fees, their customers... That's why we need a digital euro."

The Function of Digital Euro

Digital euro will be designed as an online wallet guaranteed by the ECB but operated by private entities such as banks. This system will enable users to make payments, including those without a bank account.

However, individual assets are likely to be limited to a few thousand euros and will not generate interest.

The ECB continues to test how digital euro could work, but a final decision on this matter will be postponed until the bloc's lawmakers approve the necessary legislation.