European finance officials are worried that US President Donald Trump’s support for cryptocurrencies could undermine Europe’s monetary sovereignty and financial stability. Pierre Gramegna, managing director of the European Stability Mechanism, expressed concerns during a Eurogroup meeting, highlighting that the US administration's favorable stance towards cryptocurrencies, particularly dollar-denominated stablecoins, poses risks for the euro area. Gramegna emphasized the urgency for the European Central Bank (ECB) to expedite the digital euro's development to safeguard Europe's strategic autonomy. Irish finance minister Paschal Donohoe agreed, stressing that external policy developments affect Europe's currency resilience and necessitate the establishment of a European central bank digital currency (CBDC). Meanwhile, Trump has actively opposed the Federal Reserve’s initiative to create a CBDC, advocating for a new crypto working group instead. Recent discussions surrounding the ECB’s potential development of Bitcoin for central bank reserves underline ongoing debates about digital assets' role in financial integrity and liquidity.

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