Emre Yumlu 
US dollar-pegged stablecoins, with a 97% market share, are raising concerns in the EU over Trump’s plans for dollar dominance.
Trump’s Executive Order on Digital Finance Leadership Increases Europe’s Concerns
US President Donald Trump’s executive order emphasizing the US’s leadership in digital financial technologies has further heightened the European Union’s concerns over US dollar dominance in the stablecoin market.
Piero Cipollone, a member of the European Central Bank (ECB) Executive Board, spoke at the 13th ILF Conference on the Future of the Financial Sector in Frankfurt on January 24. Cipollone highlighted the importance of the digital euro in preserving Europe’s financial and strategic independence.
Cipollone pointed out the overwhelming dominance of the US dollar in the stablecoin market, noting that this is one of the main reasons for Europe’s efforts to develop its central bank digital currency (CBDC).
US Dollar-Pegged Stablecoins Dominate the Market
Piero Cipollone, a member of the European Central Bank (ECB) Executive Board, highlighted Europe’s growing dependence on international payment systems, noting that these systems account for more than 60% of card transactions in Europe.
He also pointed out the rapid growth of mobile payments, which are expected to increase from 1% of daily retail payment share in 2019 to 9% in 2024.
Cipollone: Dollar Dominance Shapes the Stablecoin Market
Speaking at the 13th ILF Conference in Frankfurt, Cipollone stated that the US dollar’s 97% dominance in the stablecoin market is a major concern for Europe.
He emphasized the critical role of the digital euro in preserving Europe’s financial independence and maintaining trust in central banks.
Trump Administration Aims to Strengthen Dollar via Stablecoins
The Trump administration’s executive order titled “Strengthening American Leadership in Digital Financial Technologies” aims to reinforce the US dollar’s dominance in the global economy. The order seeks to promote the development of dollar-backed stablecoins while banning the use of central bank digital currencies (CBDCs) in the US.
This move reflects Trump’s efforts to maintain the dollar’s position as the world’s reserve currency and to hinder CBDC development in Europe and other nations.
Some observers suggest that Trump’s policies may be a strategy to pressure other major economies into imposing CBDC bans.
Also, you can freely share your thoughts and comments about the topic in the comment section. Additionally, please follow us on our Telegram, YouTube and Twitter channels for the latest news and updates.