European Central Bank Pushes for Digital Euro
ECB executive board member Piero Cipollone has urged European Union banks to speed up their implementation of a digital euro.
His statement follows US President Donald Trump’s signing of an executive order that could affect regulations around stablecoins.
Cipollone expressed concern that the order could cause people to turn to digital alternatives and emphasized the need for the EU to develop its own digital currency.
The ECB is currently in the early stages of exploring a digital euro, with a decision on whether to move forward expected by October 2025.
While there is growing support for a digital euro, some experts have pointed out that it may only serve as a means to manage credit risk for stablecoins.
A study by the Deutsche Bundesbank last year showed that the majority of Germans are open to the idea of a digital euro, but there are also concerns about its potential impact on cash usage and bank deposits, which could have significant effects on the financial sector.
