Cryptocurrencies

Trump’s plans could give digital euro a boost

The introduction of the digital euro is expected by 2030.(Bild: Skórzewiak)

US President Donald Trump's plans to support cryptocurrencies could give the digital euro a boost in the EU legislative process, according to ECB Director Piero Cipollone. The political world is becoming increasingly aware of Trump's plans, said Cipollone. "And it is possible that we will see an acceleration in the process."

Trump had promised to become the first "crypto president" and to promote the ownership of digital assets, including through less regulation. It is obviously a signal that the US president has so strongly embraced the idea of promoting dollar-denominated stablecoins, Cipollone told Reuters.

Introduction of the digital euro expected by 2030
The digital euro project is about digital money that would be issued by the ECB and could be used via a digital wallet. The central bank wants to have clarified fundamental questions by the end of the year. Among other things, the rules and regulations are to be finalized and the development of the platform and infrastructure driven forward.

"We are on schedule and should therefore be ready to make a decision on the transition to the next project phase by November 2025," said Cipollone.

The introduction of the digital euro is expected by 2030. The digital currency is intended to make Europe less dependent on US providers such as PayPal, Apple Pay, Mastercard and Visa when it comes to payment transactions. The issue of digital central bank money is also intended to prevent digital payment transactions from being left entirely to the private sector in view of the increasing decline in the use of cash.

EU elections have delayed work on the digital euro
The EU Commission presented its legislative proposal for a digital euro in June 2023. However, the 2024 EU elections delayed the EU Parliament's work on the digital euro. "Everything stopped," said Cipollone. Now the Parliament is resuming its work. "Once the Council and Parliament have reached an internal agreement, they will sit down with the Commission and try to finalize the legislation."

The ECB Director hopes that they will reach an internal agreement before the summer and pave the way for negotiations with the EU Commission. However, political processes are complex and there are many things on the table. "Of course, the sooner the better, but we fully understand their needs."

According to the US think tank Atlantic Council in September, 134 countries had examined the possible introduction of a digital currency at the time. Pilot phases were underway in 44 countries and currency communities, including Russia, Brazil, Sweden and China. Digital central bank currencies have already been introduced in the Bahamas, Nigeria and Jamaica.