EU Official Warns US Crypto Push Threatens Europe’s Financial Independence

• At a Eurogroup meeting, the ESM said Europe needs to take a more proactive role in cryptocurrencies.
• However, the ESM managing director highlighted the stability of stablecoins compared to volatile cryptocurrencies.
• Gramegna’s remarks echoed ECB’s Piero Cipollone’s warning on new U.S. crypto policies.

Europe must counter the U.S. government’s push on cryptocurrencies, and accelerating its digital euro plan may be a solution.

ESM’s warning about the U.S.’s new digital asset policies echoes similar concerns from other European institutions, underscoring growing unease over Donald Trump’s approach.

U.S. Views Stablecoins Favourably

Eurogroup meeting participants discussed the evolving stance of the U.S. administration on cryptocurrencies, especially dollar-denominated stablecoins.

“The U.S. administration is favorable towards cryptocurrencies and especially dollar-denominated stablecoins. These may raise certain concerns in Europe,” ESM Managing Director Pierre Gramegna said .

“It could eventually reignite foreign and U.S. tech giants plans to launch mass payment solutions based on stablecoins,” he added.

The ESM supports the European Central Bank‘s urgent push to create a digital euro to safeguard Europe’s strategic autonomy.

Additionally, Gramegna said the ESM backs the Commission’s initiative to review the MiCA Directive to counter the potential risks this changing environment poses.

Stablecoins Better Positioned for Global Payments

In response to questions about crypto’s impact on financial stability, Gramegna emphasized that stablecoins, unlike volatile cryptocurrencies, offer stability that could make them a major player in global payments.

“That’s a very important point because stablecoins, as it is in the name, have the stability that other cryptocurrencies don’t have,” he said.

“Cryptocurrencies have high volatility. So, they can be a very interesting investment, but it is a risky one,” Gramegna added.

“But the stablecoins, if they are promoted, obviously they can take an important space in the payment system worldwide,” the ESM managing director said.

ECB Shares Fears Stablecoins Could Destabilize EU

As ECB member Piero Cipollone previously said , the European Central Bank shares this worrying sentiment about the U.S. push on cryptocurrencies.

Cipollone stated that Trump’s support for USD-pegged stablecoins will accelerate legislative backing for the digital euro.

“However, the U.S. and Europe have differing views on stablecoins,” he highlighted.

European regulators appear to view stablecoins as a risk to financial stability. In contrast, the Trump administration views them as an opportunity to promote the U.S. dollar globally and boost demand for U.S. Treasuries.

“In contrast, the ECB fears that U.S.-backed stablecoins could destabilize Europe’s financial system. To counter this, the ECB is pushing forward with the digital euro, aiming to provide an alternative to dollar-based stablecoins,” he added.