European Stability Mechanism managing director Pierre Gramegna warns that US President Donald Trump’s support for cryptocurrencies, particularly dollar-denominated stablecoins, may threaten Europe's monetary sovereignty and financial stability. During a Eurogroup meeting on March 10, Gramegna highlighted the potential for a surge in US dollar-based payment solutions if the crypto trend continues in the US. He emphasized the need for the digital euro to protect Europe’s strategic autonomy in light of these developments. Irish finance minister Paschal Donohoe also expressed concerns, linking the situation to Europe's monetary resilience. The European Central Bank (ECB) is actively working on its central bank digital currency (CBDC) to facilitate transactions and counter similar U.S. innovations. Meanwhile, Trump has opposed a Federal Reserve CBDC, favoring a crypto working group instead. Given these dynamics, the ECB and other European institutions are assessing the implications of cryptocurrencies on national financial systems.

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