In response to former President Trump's prohibition of a central bank digital currency (CBDC) in the U.S., the European Central Bank (ECB) has expressed a renewed urgency for a digital euro. ECB board member Piero Cipollone highlighted at a conference that a digital euro can address the challenges posed by Trump’s recent executive order, which promotes stablecoins and aims to safeguard the sovereignty of the U.S. dollar. The ECB is exploring various technologies in developing the digital euro, asserting the need for an alternative to private digital currencies. Trump’s executive order restricts the issuance and use of a U.S. CBDC, which he labels as a risk to freedom. Cipollone emphasized that Trump's stance could negatively impact banks as consumers move toward stablecoin systems, reinforcing the case for a digital euro to ensure Europe remains competitive.

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