A senior EU official warned yesterday that the US government's support for digital currencies, especially dollar stables under Donald Trump, could be a problem for European financial independence.

Pierre Gramegna, CEO of European Stability Mechanism – ESM, claimed at a press conference after the Eurogroup meeting yesterday that new US policies towards digital currencies could damage European monetary autonomy.

He told the news conference:

The US government has a positive approach to digital currencies, especially dollar stablecoins, which may raise concerns in Europe.

According to karamegna, this support could eventually lead the US and international tech giants to launch bulk payment solutions based on dollar stabilization, which could disrupt European Monetary Sovereignty and financial stability.

Europe's attempt to counter the dollar stablecoins
The European Stability Mechanism (ESM) is an intergovernmental body that provides financial assistance to member states facing financial crises with the aim of protecting the financial stability of the eurozone.

In this regard, the European Central Bank (ECB) has been working on the development of the digital euro for years to compete with dollar-dependent stablecoins. According to information published on the bank's official website, details of the pilot phase and implementation of the digital euro will be determined in the second quarter of this year, and a draft of the rules for the digital currency will be presented in the third quarter.

Piero Cipollone, a member of the board of Directors of the European Central Bank, had previously stressed the need to accelerate the development of the digital euro. According to him, Trump's support for dollar stablecoins globally could drive customers away from traditional banks.

Trump has officially supported the crypto industry since before the election, and after returning to the White House, he has issued several executive orders focused on the industry, one of which is dedicated to the growth of dollar stables globally.

Last week, Trump issued a decree to create strategic Bitcoin reserves and accumulate digital assets. He has also announced that he hopes to sign a law on stabilcoins by August.

Reacting to recent developments at the conference Gramegna said:
The European Stability Mechanism supports the European Central Bank in accelerating the development of the digital euro to preserve Europe's strategic autonomy. This digital euro is more essential today than ever.