Publication or press release from the European Central Bank

ECB's Piero Cipollone Advocates Digital Euro to Counter Trump's Crypto Push and Disintermediate Banks

Jan 24, 2025, 12:53 PM

The European Central Bank (ECB) is advocating for the introduction of a digital euro as a strategic response to U.S. President Donald Trump's recent executive order promoting stablecoins. ECB board member Piero Cipollone highlighted that the digital euro aims to counteract the potential disintermediation of banks caused by cryptocurrencies, particularly Bitcoin. Several experts have expressed skepticism regarding the necessity of Central Bank Digital Currencies (CBDCs), arguing that the benefits for consumers are minimal while the risks could be substantial. Critics suggest that the ECB's motivation for pursuing a digital euro is primarily to maintain control over the financial system in light of the growing influence of stablecoins, which are typically pegged to the U.S. dollar. The ECB's initiative reflects broader concerns about the implications of cryptocurrency adoption for traditional banking institutions.