Piero Cipollone, Member of the Executive Board of the European Central Bank, expresses concern over the U.S. crypto strategy and calls for the launch of a digital currency by the ECB.
The ECB appears to be worried about the cryptocurrency strategy pursued by U.S. President Donald Trump. On January 24, Piero Cipollone raised the alarm in Frankfurt, voicing concern over the U.S. President’s plan to globally promote stablecoins tied to the dollar.
Cipollone stated that this could draw even more customers away from banks and strengthen the argument for the ECB to launch its own digital currency.
However, the launch of the digital euro, presented as a shield against the rise of dollar-backed stablecoins, is still under review. While the ECB promotes its digital currency as an urgent necessity, European banks fear that customers might prefer an ECB-backed wallet over their traditional services.
Frankfurt’s plan becomes even more questionable when considering that the digital euro, in its current form, would be little more than a digital wallet with a cap of just a few thousand euros and no interest.
As the ECB tries to convince everyone of the urgency of its digital project, one can’t help but smile at the thought that perhaps, behind all this haste, lies a simple fear of losing control over monetary sovereignty.
