Ministers of Finance in the Eurozone have expressed their concerns over a new US stance on cryptocurrencies. European officials believe that this policy shift could have a negative impact on the monetary sovereignty and financial stability of the eurozone.
Recently, US President Donald Trump, who had promised to be a “crypto president” during his election campaign, signed a decree to establish a strategic reserve of cryptocurrencies under government ownership. This decision represents a significant departure from the previous administration’s approach.
Following discussions on this issue, the Chairman of the Council of Ministers, Pascal Donohee, stated during a press conference that “political changes in other jurisdictions could have significant implications for Europe.” He highlighted the importance of these discussions for the autonomy and stability of the European currency.
Donohee emphasized the critical need for the creation of a digital Euro in collaboration with the European Central Bank (ECB) to maintain a leading position in this sector. The ECB has been working on developing digital euros since 2020, particularly in response to Facebook’s announcement in 2019 regarding its intention to launch the digital currency Libra.
The initial plans by Facebook raised concerns among regulators in both the USA and Europe. Although the Libra project was rebranded as Diem and eventually stalled in early 2022, Pierre Grammon, the head of the European stabilization mechanism, suggested that the new US stance might encourage major tech companies to revisit launching their payment systems.
During the discussions, the importance of European sovereignty was emphasized by Grammon. The US government’s shift in position towards cryptocurrencies, particularly stablecoins pegged to the US dollar, has raised concerns in Europe as it could lead to the resurgence of plans by foreign and American tech giants to introduce widespread payment solutions based on US dollar-backed stablecoins.