President Donald Trump’s support for crypto and stablecoins could accelerate the progress of a European central bank digital currency, or CBDC, according to one European Central Bank (ECB) board member.
In an interview with Reuters, ECB board member Piero Cipollone said he “hoped” the European Union’s Parliament and Council could finalize work on digital euro legislation before the summer of 2025, allowing the rules to be finished in November.
"The political world is becoming more alert to this," Cipollone told the news outlet. "And it’s possible that we will see an acceleration in the process."
He added: "Political processes are complex, and there are many things on the table."
Cipollone explained that the rise of U.S. stablecoins as a means of payment was "worrisome" as it risks taking deposits away from European banks. For example, a French consumer might choose to keep cash in the form of a stablecoin like Tether’s USDT or Circle’s USDC rather than in a bank account controlled by a French bank.
The statement follows the Trump administration hitting the ground running when it comes to pro-stablecoin policies. In a recent executive order, Trump vowed to “protect and promote the sovereignty of the United States dollar” via “actions to promote the development and growth of lawful and legitimate dollar-backed stablecoins worldwide.”
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On Wednesday, Sen. Bill Hagerty, R-Tenn., forecast that the proposed GENIUS Act, which would give U.S. stablecoin issuers a strong legal framework, could be passed within 100 days.
The ECB’s Cipollone is already a known critic of U.S. dominance in financial services, arguing in a previous ECB report that European countries’ reliance on Visa and Mastercard networks, instead of their payment systems, was a negative.
Europe’s central bank has officially been developing a central bank digital currency since 2021. The Preparation Phase of the project is set to end in November 2025, the earliest possible date for a potential test rollout.
ECB President Lagarde Dismisses Bitcoin as Reserve Asset for Member States
European Central Bank President Christine Lagarde has poured cold water on speculation that member countries will add Bitcoin to their reserves any time soon. At a Thursday press conference in Frankfurt, Lagarde said Bitcoin's volatility and ties to illicit finance make it unfit as a reserve asset. “There is a view around the table of the governing council … that reserves have to be liquid, that reserves have to be secure, that they have to be safe," Lagarde said. “I'm confident that Bitcoins w...
Regardless of Trump’s stance on stablecoins, widespread political acceptance of a digital euro is not guaranteed.
Sarah Knafo, a French member of the European Parliament, said, “No to the digital euro, yes to a strategic Bitcoin reserve,” in a speech posted on X, formerly Twitter, in December. Meanwhile, Jörg Meuthen, a German member of the European Parliament, accused the ECB of ultimately aiming for a cashless society in an interview with Politico.
Edited by Stacy Elliott.
