Trump’s Crypto Push Raises Questions About the Euro’s Future

On March 10, 2025, the head of the European Stability Mechanism (ESM), Pierre Gramegna, raised alarms about the growing influence of U.S. cryptocurrency policies under President Donald Trump’s administration.

Speaking to Bloomberg News, Gramegna cautioned that Trump’s aggressive promotion of dollar-backed stablecoins could threaten the European Union’s monetary sovereignty. With the U.S. signaling a clear shift toward embracing digital assets, Europe faces mounting pressure to respond strategically to maintain control over its financial systems. Gramegna’s comments reflect broader unease about the potential for American tech giants and foreign firms to dominate global payment networks using these stablecoins, which are tied to the U.S. dollar and already wield significant economic clout.

The numbers underscore the stakes. Dollar-pegged stablecoins currently boast a combined market cap exceeding $224 billion, with more than $4 trillion in transactions processed over the past month alone. This scale highlights their growing role in international finance, a trend Gramegna warned could erode the euro area’s financial stability if left unchecked.

His concerns come as the Trump administration doubles down on its crypto-friendly agenda, including a recent executive order banning federal agencies from exploring a U.S. central bank digital currency (CBDC) while laying the groundwork for wider stablecoin adoption globally. For Europe, the implications are clear: without a robust counterstrategy, the region risks ceding influence to a U.S.-led digital economy.

Europe’s Answer Lies in the Digital Euro

To address these challenges, Gramegna and the ESM are throwing their weight behind the European Central Bank’s (ECB) efforts to fast-track the development of a digital euro. This initiative, which has gained urgency in recent months, aims to provide a European alternative to the rising tide of stablecoins.

ECB board member Piero Cipollone echoed this sentiment in late January, emphasizing the need to accelerate the digital euro’s rollout as a direct response to Trump’s policies. Cipollone’s remarks followed Trump’s first crypto-focused executive order on January 23, which prioritized stablecoins over a CBDC, signaling a clear divergence from Europe’s approach.

Gramegna stressed that a digital euro is not just a technical project but a critical step toward preserving Europe’s financial autonomy. As the U.S. continues to shape the global digital asset landscape, the ECB’s decision on this initiative will mark a pivotal moment for the region.

Meanwhile, Trump’s administration has taken further steps to solidify America’s crypto ambitions. Last week, a second executive order established a Strategic Bitcoin Reserve and a Digital Asset Stockpile, managed by the U.S. Treasury using assets seized in legal cases. This move, paired with Trump’s vision of stablecoins as a pillar of U.S. economic dominance, underscores the widening gap between American and European strategies.

The ECB, under President Christine Lagarde’s leadership, remains skeptical of cryptocurrencies like Bitcoin as reserve assets. In a recent address, Lagarde argued that reserves must prioritize liquidity, security, and safety—qualities she believes are undermined by digital assets linked to potential illicit activities. This stance contrasts sharply with Trump’s plans, setting the stage for a broader debate about the future of money in a rapidly digitizing world. For Europe, the path forward hinges on balancing innovation with stability, a challenge made all the more pressing by the U.S.’s crypto pivot.