European Central Bank Pushing for Digital Euro To Counter Trump’s Support for Stablecoins: Report

The European Union’s central financial institution is reportedly pushing for a digital euro to counter US President Donald Trump’s embrace of dollar-pegged non-public sector stablecoins.

European Central Financial institution (ECB) board member Piero Cipollone stated at a convention on Friday that Trump’s new government order on crypto might drive individuals away from banks, Reuters studies.

“I feel the important thing phrase right here (in Trump’s government order) is international. As you all know, this answer additional disintermediates the banks as they lose prices and clients… That is why we’d like a digital euro.”

Earlier this week, President Donald Trump signed an government order to guage the creation of a strategic nationwide Bitcoin (BTC) and crypto stockpile.

The order additionally calls on the federal government to “promote the event and progress of authorized and bonafide” dollar-pegged stablecoins created within the non-public sector.

It additional directs federal businesses to halt all actions associated to the event of a government-backed digital model of the greenback, also referred to as the central financial institution digital foreign money (CBDC).

The administration’s new management on the U.S. Securities and Change Fee (SEC) additionally rescinded Employees Accounting Bulletin 121, a controversial rule that pressured banks to establish crypto belongings held on behalf of their clients as liabilities on their stability sheets.

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