Euro Zone Finance Ministers Express Concerns Over U.S. Cryptocurrency Policy Shift
Brussels, March 10, 2025 – Euro zone finance ministers are expressing significant concerns regarding recent policy changes in the United States that favor the use of cryptocurrencies, fearing potential implications for monetary sovereignty and financial stability within the euro area.
In an announcement following a meeting of euro zone finance ministers, chairman Paschal Donohoe emphasized the interconnectedness of global financial policies, stating that developments in the United States could have substantial effects on Europe. “Policy developments in other jurisdictions can have important consequences for us here in Europe,” he remarked during a press conference on Monday.
The concerns arise in the wake of U.S. President Donald Trump’s executive order to establish a strategic reserve of cryptocurrencies, utilizing tokens already held by the government. This move signals a stark shift from previous administrations, with Trump positioning himself as a "crypto president" during his campaign.
Donohoe highlighted the need for the European Central Bank (ECB) to expedite its work on creating a digital euro, describing it as “critical to staying ahead of the curve,” and ensuring that Europe can maintain its autonomy in the evolving landscape of digital currencies.
The ECB’s initiative to develop a digital euro commenced in 2020 as a response to growing interest in cryptocurrencies, particularly after Facebook unveiled plans to launch its own digital currency, Libra (later rebranded as Diem). The announcement raised immediate red flags among regulators in both the U.S. and Europe regarding the implications for regulatory oversight and financial systems.
Pierre Gramegna, who heads the European Stability Mechanism, echoed Donohoe’s concerns by asserting that the U.S. administration’s renewed favor toward cryptocurrencies could encourage large technology firms to once again pursue their own payment solutions tied to digital assets. He warned that the resurgence of such initiatives could threaten the euro area’s financial stability and sovereignty.
Gramegna stressed the potential risks that dollar-denominated stablecoins—digital currencies pegged to the U.S. dollar—pose. “If this were to be successful, it could affect the euro area’s monetary sovereignty and financial stability,” he cautioned, underscoring the urgent need for a proactive response from European regulators and policymakers.
As the financial landscape evolves with the increasing adoption of cryptocurrencies, these developments highlight the ongoing challenges and considerations for governments and financial institutions worldwide. The euro zone’s response to these changes will likely be pivotal in shaping its future economic framework and regulatory approach to digital currencies.
Reporting by Jan Strupczewski; Editing by Lincoln Feast.
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