Euro Zone Finance Ministers Voice Concerns Over U.S. Cryptocurrency Policy Shift
Brussels, March 10, 2025 — Euro zone finance ministers have expressed apprehension regarding a recent shift in U.S. cryptocurrency policy under the administration of President Donald Trump, warning that it could jeopardize the financial stability and monetary sovereignty of the euro zone. This statement follows the President’s signing of an executive order aimed at establishing a strategic reserve of cryptocurrencies through tokens already held by the government.
During a news conference on Monday, Paschal Donohoe, the chairman of the Eurogroup, articulated the potential repercussions these U.S. policy changes could have on Europe, emphasizing the necessity for the euro zone to enhance its own economic infrastructures, particularly through the development of a digital euro. “Policy developments in other jurisdictions can have important consequences for us here in Europe,” Donohoe remarked, highlighting the connection between the new U.S. approach and the autonomy and resilience of the European currency.
The European Central Bank (ECB) has been actively investigating the creation of a digital euro since 2020, a response to growing interest in digital currencies, particularly following Facebook’s initial announcement in 2019 about launching its digital currency, Libra. Although the Libra project was rebranded to Diem and ultimately collapsed in early 2022 due to regulatory pressures, the European finance officials remain wary. They fear that the recent embrace of cryptocurrencies in the U.S. could reignite similar initiatives from major technology firms intending to develop their own payment systems, potentially centered around dollar-denominated stablecoins.
Pierre Gramegna, head of the European Stability Mechanism, asserted that the shift in U.S. sentiment toward cryptocurrencies and especially stablecoins raises critical concerns. He stated, “If this were to be successful, it could affect the euro area’s monetary sovereignty and financial stability.” His comments underscore how a surge in adoption of U.S.-backed payment solutions could disrupt European financial markets and weaken the euro’s standing against the dollar.
As discussions continue in the Eurogroup, the call for swift action on digital currency initiatives appears to have gained urgency. With the evolving landscape of cryptocurrencies, euro zone officials are focusing on ensuring that the region remains at the forefront of digital innovation while safeguarding its economic future.
The situation reflects the broader challenge in global finance, as countries adapt to the rapidly changing environment influenced by technology and cryptocurrencies. The euro zone’s response, particularly through the ECB’s digital euro project, will be crucial in navigating these challenges in the coming years.
Reporting by Jan Strupczewski; Editing by Lincoln Feast.
Share this article:
