The European Central Bank (ECB) is optimistic that U.S. President Donald Trump's support for dollar-pegged cryptocurrencies will hasten legislative progress for the digital euro, according to ECB board member Piero Cipollone.
The ECB's digital currency aims to provide an online payment solution that bypasses dominant U.S. companies like Visa and PayPal. Cipollone believes that the rise of U.S. stablecoins could create more urgency for the digital euro project.
Although the European Commission proposed digital euro legislation in June 2023, progress has been slow due to skepticism among lawmakers and bankers. Cipollone hopes that the EU Parliament and Council will finalize the legislation before summer, allowing negotiations with the Commission, to complete the rules by November.
Concerns arise that U.S. stablecoins could divert deposits from European banks as they become popular for payments. Bankers are also worried that a digital euro could lead to a loss of funds as customers transfer cash to an ECB-backed wallet.
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