The European Central Bank (ECB) has emphasized the necessity of a digital euro following President Trump's recent executive order that bans central bank digital currencies (CBDCs) in the U.S. During a conference, ECB executive board member Piero Cipollone highlighted that the digital euro could counter restrictions imposed by U.S. policies, particularly concerning stablecoins. The ECB is actively exploring various technologies for developing a digital euro, both centralized and decentralized. This comes amid Tether's announcement to cease minting euro-backed tokens due to European regulatory challenges, and Trump's executive order aims to ensure the dollar's dominance by restricting CBDC development. Cipollone noted that Trump's directive could adversely impact banks as clients might transition to using stablecoins, underscoring the need for a digital euro. Furthermore, the ECB has been considering a CBDC for several years, with President Christine Lagarde previously describing it as a potential complement to cash, offering an alternative to private digital currencies while ensuring sovereignty over monetary systems.

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