European finance officials are raising alarms over former U.S. President Donald Trump’s pro-crypto stance, warning that his embrace of digital assets—particularly dollar-backed stablecoins—could undermine Europe’s financial stability and monetary sovereignty.

At a March 10 Eurogroup press conference, European Stability Mechanism (ESM) Managing Director Pierre Gramegna expressed concern over the U.S. administration’s favorable stance on cryptocurrencies. He warned that a successful expansion of U.S. tech giants’ stablecoin-based payment systems could diminish the euro’s role and disrupt European markets.

“The US administration is favorable toward cryptocurrencies and especially dollar-denominated stablecoins, which may raise certain concerns in Europe,” Gramegna stated. He emphasized the urgency of accelerating the digital euro’s development to maintain Europe’s financial autonomy, asserting that “this digital euro is today more necessary than ever.”

Irish Finance Minister Paschal Donohoe echoed these concerns, stressing that financial policies in other regions directly impact Europe’s economic resilience. He underscored the importance of a European central bank digital currency (CBDC) in safeguarding the euro’s dominance.

In February, the European Central Bank (ECB) announced further development of its CBDC payment system to facilitate institutional transactions. Since 2020, the ECB has been researching digital euro applications, including retail and cross-border settlements.

Meanwhile, Trump has taken a hard stance against a Federal Reserve CBDC, signing an executive order in January banning its creation. The ECB, for its part, has dismissed Bitcoin as a reserve asset, with President Christine Lagarde reaffirming that central bank reserves must be “liquid, secure, and safe.” She firmly stated that Bitcoin would not be included under European Council guidelines.

As the U.S. moves forward with its crypto-friendly policies, Europe faces a critical decision: embrace digital assets on its own terms or risk ceding financial control to American-dominated stablecoins.