The European Central Bank is hopeful that the plan of US President Donald Trump to support cryptocurrencies, pegged to the dollar, will accelerate the adoption of legislation on digital euro, stated ECB board member Pier Carlo Padoan in an interview with Reuters.
The ECB presented its digital currency, primarily representing online wallets, guaranteed by the Central Bank, as an electronic means of payment, not dependent on dominant American suppliers like Visa and PayPal.
Padoan stated that Trump's support for stablecoins, pegged to the dollar and accessible globally, would help create yet another payment instrument produced in the USA and expedite the project of the digital euro.
The proposal for legislation on the digital euro was presented by the European Commission in June 2023, however since then little has happened due to skepticism from some legislators and bankers.
The EU Parliament may prepare a report by summer, according to European Parliament member Markus Ferber.
Quote: "The widespread adoption of American stablecoins as a payment means poses risks, as this threatens to divert deposits from European banks," noted Padoan.
The ECB hopes that the EU Parliament and Council will complete work on legislation for the digital euro before summer, which would create the prerequisites for negotiations with the Commission.
In order to address banking risks, the ECB stated that the size of deposits will likely be limited to several thousand euros and will not be reimbursable.
Nigeria, Jamaica, and the Bahamas have already launched a digital currency of the Central Bank (CBDC), and another 44 countries, including Russia, China, Australia, and Brazil, are conducting pilot projects, according to the Atlantic Council research center.
Unlike this, Trump banned the Federal Reserve from issuing its own central bank digital currency.
Quote: "The political world is becoming more attentive to this," noted Padoan in an interview with the media. "Clearly, the sooner, the better, but we fully understand their needs. Political processes are complex, and at the table many issues arise, possibly we will see acceleration in the process," added Padoan.
