Trump increasingly pressure on crypto - Europe warns of threats financial sovereignty

<p> <strong> Trump increasingly pressure on crypto - Europe warns of threats financial sovereignty </strong> </p>

The effects of the Trump administration on the global crypto market and European financial sovereignty

The Trump administration has made a significant change of course in relation to cryptocurrencies, which is concerned in Europe. EU officials warn that the increasing support of Stablecoins in the USA, potentially Bitcoin and the US dollar, could seriously endanger the financial sovereignty of Europe.

Pierre Gramegna, Managing Director of the European Stability Mechanism (ESM), recently commented on the US attitude towards cryptocurrencies in Brussels. In particular, the promotion of dollar-bound stable coins could be serious challenges for the EU and its currency autonomy. Gramegna notes that the urge of the Trump administration to establish financial instruments based on cryptocurrencies that could enable American and international technology companies to develop masses that are based on stable coins. This could undermine the dominance of the euro.

progress in the USA and hesitant reactions in Europe

Trump does not wait for permission, but acts proactively. Last week he signed an executive order that includes the establishment of a Bitcoin resort and an additional storage system for crypto assets that were confiscated in legal cases. This measure integrates cryptocurrencies into the US government's financial system and marks a significant change compared to previous, rather skeptical positions.

While the United States aggressively align itself with crypto, Europe hesitates. The European Central Bank (ECB) has been working on the development of a digital euro since 2021, but a final decision is still removed for months. In contrast to the United States, the ECB has so far refused to include Bitcoin in its money reserves. European decision -makers therefore express the need to bring the digital euro to the market quickly in order to avoid financial instability in the region. Gramegna emphasizes that the digital euro is more urgently needed today than ever.

However, there are different opinions in Europe about dealing with cryptocurrencies. Christine Lagarde, President of the ECB, made it clear that Bitcoin will not become part of the EU's official reserves. She positioned herself against statements by Ales Michl, the Governor of the Czech National Bank (CNB), who indicated an examination of Bitcoin investments in 2024. Lagarde emphasized that the ECB is taking a clear attitude to ensure that their reserves are liquid, safe and free of risks such as money laundering.

Discussions in the Czech Republic about Bitcoin

ales Michl confirmed that the CNB discusses a possible assignment of 5% Bitcoin in its reserves. However, these discussions are still in the early stages and it is unclear in which direction they will develop. On January 28, the Czech finance minister expressed concerns about the idea of ​​what points to certain divisions within the country's leadership. The CNB Policy Board approved a plan for analyzing new investment options, but without mentioning crypto directly.

The discussion about Bitcoin as a reserve assets is not without controversy. Christian Lindner, the former German finance minister, also questioned the idea and mostly received negative reactions. Joachim Nagel, President of the Deutsche Bundesbank, described Bitcoin as an analogue on the tulip mania of the 16th century and emphasized that reserve assets must be safe, fluid and transparent - properties that Bitcoin does not fulfill.

FAZIT

Developments in the USA under Trump and the associated regulations on cryptocurrencies are challenging Europe to react promptly and introduce their own digital euro. The different approaches within the EU and skepticism to Bitcoin and other cryptocurrencies illustrate that the discussion about digital currencies is only at the beginning and European financial sovereignty faces significant challenges.