US President Donald Trump's recent executive order on digital financial technology has raised significant concerns within the European Union, particularly regarding the dominance of US dollar-pegged stablecoins. Currently, US dollar stablecoins account for 97% of the global stablecoin market, valued at $215 billion. This overwhelming dominance has prompted European officials, including European Central Bank (ECB) board member Piero Cipollone, to emphasize the need for the digital euro to ensure Europe’s financial autonomy and reduce reliance on the dollar.
During a panel at the 13th ILF Conference, Cipollone discussed the rapid growth of mobile app payments and international card schemes in the EU, further underlining the importance of developing a central bank digital currency (CBDC) to preserve Europe’s strategic independence.
Trump’s executive order aims to promote the growth of dollar-backed stablecoins globally, reinforcing the US dollar’s position in the digital economy. However, it also prohibits the issuance of CBDCs in the US, raising concerns about the development of CBDCs worldwide. This move is seen as an effort to protect the US dollar’s supremacy as the global reserve currency, potentially challenging the EU's plans for a digital euro and other international CBDC initiatives.
The growing dominance of USD-backed stablecoins and the push for digital currency sovereignty have intensified the debate on global financial systems and the future of central bank-backed digital currencies.
#MicroStrategyAcquiresBTC