According to Frankfurt, Trump’s crypto-friendly policy could put the continent’s economy at risk.
As reported by Politico, the European Central Bank (ECB) has expressed concerns about the potential impact of a Trump administration on the crypto sector, fearing a possible financial “contagion” that could destabilize the European economy.
According to a confidential document seen by the U.S. news outlet, European monetary authorities worry that the U.S. President’s support for the crypto industry could pose a risk to the continent’s financial stability.
The ECB views the tycoon’s backing of digital assets as an attempt to strengthen the global reach of the dollar and attract capital to the United States, especially through stablecoins. The European Commission, however, has reportedly challenged this analysis, suggesting the ECB might be overstating the risk.
MiCA may not be enough
Although Europe has implemented the MiCA (Markets in Crypto-Assets) regulation — considered the first legislation specifically designed for digital asset companies — the Central Bank fears these measures might not be enough to counter the effects of two new U.S. laws. The legislative proposals, STABLE and GENIUS, mainly designed to extend the reach of dollar-backed stablecoins, are said to be causing unease within the ECB.
However, according to insiders, an EU official claimed that the central institution might be amplifying concerns over stablecoins in order to secure political support for its digital euro project.
