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Piero Cipollone reportedly said Donald Trump’s executive order affecting stablecoins could potentially influence people considering abandoning big banks.
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European Central Bank (ECB) executive board member Piero Cipollone reportedly reiterated calls for EU banks to introduce a digital euro after US President Donald Trump signed an executive order potentially impacting stablecoins.
According to a Jan. 24 Reuters report, Cipollone said Trump’s executive order on “strengthening American leadership in digital financial technology” could potentially cause residents to move away from financial institutions in favor of digital solutions. The executive order signed on Jan. 23 could establish a working group to study a regulatory framework for stablecoins and promote “legitimate dollar-backed stablecoins worldwide.”
“I guess the key word here is worldwide,” said Cipollone, according to Reuters. “This solution, you all know, further disintermediates banks as they lose fees, they lose clients […] That’s why we need a digital euro.”
Cipollone has been one of the ECB’s more vocal proponents for introducing a digital euro as the central bank studies a potential rollout. The digital currency project is currently in the preparation phase, expected to be followed by a decision on whether to launch in October 2025.
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It’s unclear whether all aspects of Trump’s executive order will go into effect, as many of his orders since taking office on Jan. 20 face multiple lawsuits questioning their legality. In addition to promoting stablecoins, the executive order could also prohibit a US central bank digital currency (CBDC) and have the working group study the potential creation and maintenance of a national crypto stockpile.
This article first appeared at Cointelegraph.com News
