On January 24th, COINOTAG reported insights from Reuters concerning the remarks made by Piero Cipollone, an influential member of the European Central Bank (ECB) Governing Council. He asserted that the recent initiatives by U.S. President Trump, aimed at advancing the U.S. dollar stablecoin, underscore the urgent need for the introduction of a digital euro. Trump’s recent executive order aims to “foster the development of legitimate USD stablecoins globally,” which may lead to a decline in bank customer retention and a decrease in transaction costs.
During a pivotal meeting held in Frankfurt, Cipollone outlined that the proposed digital euro would function as an ECB-backed digital wallet, managed by traditional banking institutions. This strategy intends to enhance financial inclusion by enabling unbanked individuals to conduct payments, while capping their holdings and not offering any interest. Presently, central banks in the Eurozone are engaged in trials to assess the viability of the digital euro, with a conclusive decision pending legislative approval from the European Parliament.