Europe split over crypto threat, since Trump's politics arouses concerns

The European financial authorities are currently shared of how great the danger is that Donald Trump's crypto -friendly attitude for the euro zone is.

The European Central Bank (ECB) has Alarm beaten And argues that Trump's policy could disturb the EU financial landscape by promoting an increase in dollar -based digital currencies. In her view, this could lead to cross -border financial instability and undermine the monetary independence of Europe.

On the other hand, the European Commission rejected the ECB's warnings and explains that the existing legal framework-in particular the regulation on markets for crypto-assets (mica) introduced in 2023-was robust enough to master any consequences. The Commission even accused the Central Bank of miscalculating the regulations, which led to a broader institutional conflict.

The core of disagreement revolves around the rise of stable coins that are coupled to the US dollar and, according to the ECB, could undermine the dominance of the euro. She argues that stricter controls are necessary to prevent foreign crypto assets from gaining a foothold in Europe. The Commission, on the other hand, does not consider a comprehensive new regulation to be necessary.

This debate was headed for during a meeting on April 14, in which the EU heads of state and government discussed the possible consequences of the growing influence of the United States in the field of cryptocurrencies. While the ECB urged urgent political adjustments, most Member States stood on the Commission's side and released the concerns.

Nevertheless, the concerns of the ECB are not out of air. The institution has long been committed to a balanced development of both the traditional finance industry and digital innovation within the EU. In fact, the ECB is already driving plans for a digital euro, a project that aims to preserve the region's economic autonomy in a world that is increasingly influenced by US digital currencies.