The European Central Bank (ECB) has expressed an urgent need for a digital euro following President Trump's recent executive order prohibiting the development of a US central bank digital currency (CBDC). ECB board member Piero Cipollone stated that this move could push users towards stablecoins, consequently impacting banks as consumers shift to these digital tokens. He emphasized that Europe must prioritize developing a digital euro to counteract Trump’s anti-CBDC stance. The ECB is currently exploring various technologies for this initiative. Trump's order aims to safeguard the sovereignty of the dollar by promoting dollar-backed stablecoins while banning US CBDC issuance. This follows ECB President Christine Lagarde's previous comments on CBDCs, which are perceived as essential for complementing cash and providing alternatives to private digital assets. Concerns remain in the crypto community about potential government control over financial transactions through CBDCs.

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