European Central Bank (ECB) executive board member Piero Cipollone has urged EU banks to accelerate efforts to implement a digital euro.
His comments come after US President Donald Trump signed an executive order that could influence stablecoin regulations.
ECB Pushes for Digital Euro
According to Reuters, Cipollone highlighted that Trump’s order could lead people to shift from traditional banks to digital alternatives. Trump’s latest executive order proposes a regulatory framework for stablecoins and supports legitimate dollar-backed stablecoins globally.
Cipollone has consistently supported the introduction of a digital euro. The ECB’s digital currency initiative is currently in the preparatory phase, with a decision on whether to proceed expected by October 2025.
“The ECB has no Idea how laughable it is with statements like this. We all know the digital euro doesn’t exist, but by the time it does, It will just be a way to manage credit risk for stablecoins,” FinTech expert Simon Taylor wrote on X (formerly Twitter).
A Deutsche Bundesbank study from last year revealed that 86% of Germans are open to the idea of a digital euro, reflecting changing attitudes toward digital currencies.
However, concerns remain about the potential effects on cash usage and bank deposits, which could significantly impact the financial sector.
While the digital euro gains attention in the EU, some German lawmakers have expressed support for Bitcoin as an alternative to CBDCs.
“Piero Cipollone (executive board ECB) doesn’t even pretend CBDCs solve any problem or are good for society. His reasons for a CBDC – Bitcoin disintermediates banks as they lose fees, they lose clients. That’s why we need a digital euro. Agreed: CBDCs are designed to serve banks”, wrote Bitcoin analyst Daniel Batten.
At the same time, the European Union has implemented MiCA regulations to oversee crypto businesses across the region. It remains uncertain how a digital euro would influence the growth of Europe’s crypto sector.
The US is Moving Away from CBDCs
Yesterday, a series of pro-crypto regulatory developments occurred in the US. Trump’s first crypto-related executive order calls for creating a “Working Group on Digital Asset Markets.”
More notably, it suggests building a national stockpile of digital assets. The SEC also overturned its controversial SAB 121 ruling. This will simplify the processes that banks use to hold Bitcoin and other cryptocurrencies.
Trump has also pardoned Silk Road founder Ross Ulbricht on his second day, which was highly appreciated by the crypto community. However, his executive order gives a stern warning against in CBDC initiative in the US.
If the order receives congressional approval, any US entities will not be able to issue or promote a CBDC. A similar sentiment might also spill over to the EU and hamper its digital euro plans.
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