In a recent statement, a member of the European Central Bank Board of Directors (ECB), Piero Sebolone, stressed the need for the euro euro dignity banks to adopt the initiative of US President Donald Trump to encourage stable currencies.
These cryptocurrencies associated with US dollar are part of a broader strategy that Donald Trump has set in his speech. Executive Last Thursday.
Stable currencies against the digital euro
Cibuloni expressed his concern that Trump’s focus on enhancing the development of stable currencies supported by dollars could increase customer transformation away from traditional banks, thus enhancing the argument of the European Central Bank to provide its own currency. Digital currency.
“The basic word here in Trump’s executive is” all over the world, “Cibulon said during a conference in Frankfurt. .
The stable currencies operate similar to the money market boxes, providing exposure to short -term interest rates in A. A stable official currencyMost often the US dollar. On the other hand, the digital euro will serve as an online wallet supported by the European Central Bank, but managed by financial institutions such as banks.
This digital currency can enable individuals, including those who do not have bank accounts, to make payments easily. However, there may be limits for property, which are likely to be defined by a few thousand euros, and these property will not accumulate interest.
The digital euro’s ability to deplete liquidity from cash reserves
Reuters Reports Fears that the banks also raised about the potential effect of the digital euro on their liquidity. There is a fear that customers will transfer money into a portfolio supported by the European Central Bank, and thus drain their cash reserves.
Currently, the European Central Bank is experimenting with the practical applications of the digital euro, but the final decision on its launch will depend on the approval of European legislators on relevant legislation.
In an important step, Trump’s executive order is also prohibited from issuing his executive order The digital currency of the Central Bank (CBDC). This guidance is in line with a wider direction, as countries such as Nigeria, Jamaica and the Bahama are already launched their own digital currencies.
In addition, 44 other countries, including Russia, China, Australia and Brazil, are implementing experimental programs, according to the Atlantic Council Research Center.
Everywhere, the pressure for the digital euro has become increasingly important, especially in the context of the competitive pressures imposed by stable currencies and other digital assets in the European Union.
The European Central Bank’s decision to move forward with the digital euro can significantly reshape the banking scene in Europe, ensuring that it remains able to compete under increasing conditions. Digital economy.
At the time of this report, the total market value of digital assets is 3.52 trillion dollars, of which stable currencies acquired a part of 215 billion dollars, according to Defillama. Data.
Distinctive image from Bloomberg, the chart of TradingView.com
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