"ECB Urged to Fast-Track Digital Euro Amid Trump’s Stablecoin Push 💶🚀"
ECB board member Piero Cipollone said the European Central Bank (ECB) must accelerate efforts to launch a digital euro in response to President Donald Trump’s push to promote dollar-backed stablecoins globally, Reuters reported on Jan. 24.
Cipollone made the statement while speaking at a conference in Frankfurt, where he also claimed that stablecoins pose a growing threat to traditional banking and monetary systems.
Trump’s executive order, issued on Jan. 23, laid out a strategy to promote the “development and growth of lawful and legitimate dollar-backed stablecoins worldwide.” Additionally, it prohibits federal agencies from advancing plans related to a central bank digital currency (CBDC).
“I guess the key word here is worldwide. This solution, you all know, further disintermediates banks as they lose fees, they lose clients… That’s why we need a digital euro.”
Stablecoins are tokens backed by real-world assets. This sector’s most significant tokens by market cap are pegged to the US dollar.
Based on Artemis data, the total stablecoin market cap has surpassed $211 billion, a 4.2% increase over the past 30 days. Meanwhile, as of Jan. 24, the monthly transaction volume for stablecoins was over $6 trillion.
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