{"id":21321,"date":"2025-04-09T14:31:33","date_gmt":"2025-04-09T14:31:33","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=21321"},"modified":"2025-04-09T14:31:33","modified_gmt":"2025-04-09T14:31:33","slug":"ecb-exec-renews-push-for-digital-euro-to-counter-us-stablecoin-growth","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=21321","title":{"rendered":"ECB exec renews push for digital euro to counter US stablecoin growth"},"content":{"rendered":"
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The European Central Bank is intensifying its warnings over stablecoin adoption, with one of its top officials calling for a digital euro to curb the influence of US dollar-pegged stablecoins across the continent.<\/p>\n

ECB executive board member Piero Cipollone has penned<\/a> another article highlighting concerns over the growing popularity of US dollar stablecoins, arguing that launching a central bank digital currency (CBDC<\/a>) could help preserve the eurozone\u2019s monetary sovereignty.<\/p>\n

A potential digital euro<\/a> \u201cwould limit the potential for foreign currency stablecoins to become a common medium of exchange within the euro area,\u201d Cipollone wrote in a statement published April 8 on the ECB\u2019s official website.<\/p>\n

The remarks follow a string of similar public statements from Cipollone, who has been a vocal advocate for a digital euro as a strategic response to the dominance of dollar-backed stablecoins in Europe<\/a>.<\/p>\n

A \u201cpublic-private partnership to retain sovereignty\u201d<\/h2>\n

In the latest piece, Cipollone reiterated that excessive reliance on foreign providers \u2014 including stablecoins as well as international card schemes \u2014 compromises the monetary sovereignty of Europe.<\/p>\n

\u201cIt also underscores the urgent need for a digital euro. Failing to act would not only expose us to significant risks but also deprive us of a great opportunity,\u201d the central banker said.<\/p>\n

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ECB\u2019s executive board member Piero Cipollone. Source: Bloomberg<\/em><\/p>\n<\/figcaption><\/figure>\n

Cipollone also cited concerns about the United States\u2019 increasingly crypto-friendly stance<\/a> under the current administration, including efforts to promote<\/a> dollar-based stablecoins globally.<\/p>\n

Related: <\/strong><\/em>Lawmaker alleges Trump wants to replace US dollar with his stablecoin<\/strong><\/em><\/a><\/p>\n

\u201cThey could potentially result not just in further losses of fees and data, but also in euro deposits being moved to the US and in a further strengthening of the role of the dollar in cross-border payments,\u201d he said, adding:<\/p>\n

\u201cFaced with these challenges, we need a public-private partnership to retain our sovereignty. The digital euro \u2014 as a sovereign European means of payment based on EU legislation \u2014\u00a0 would be the cornerstone of this partnership.\u201d<\/p><\/blockquote>\n

ECB wants to promote cash but can\u2019t do it online<\/h2>\n

Cipollone also highlighted the \u201cvital role of cash\u201d in ensuring financial inclusion and resilience, stating that cash remains a \u201ccornerstone of the European financial system\u201d and is its only sovereign means of payment.<\/p>\n

However, a growing preference for digital payments has limited the use of cash amid the rapid growth of online shopping, which now accounts for one-third of European retail transactions, he said.<\/p>\n

\u201cCash cannot be used online, and it is often not possible to pay using a European payment service, meaning we need to rely on non-European payment systems,\u201d Cipollone added.<\/p>\n

\u201cThe time to act is now,\u201d he said. \u201cMaking progress on both the digital euro regulation and the regulation on the legal tender status of cash has become urgent if we are to increase our resilience to possible disruptions and reverse our ever-increasing dependence on foreign companies.\u201d<\/p>\n

Despite the ECB\u2019s ongoing efforts, the proposed digital euro has faced criticism and skepticism among European consumers<\/a>, especially around data privacy concerns.<\/p>\n

An ECB working paper on the digital euro published in March showed that European consumers are not interested in adopting a digital euro, with many seeing little value in the potential CBDC<\/a>.<\/p>\n

Magazine: <\/strong><\/em>Stablecoin for cyber-scammers launches, Sony L2 drama: Asia Express<\/strong><\/em><\/a><\/p>\n