The President Trump executive order raises EU concerns over USD stablecoin dominance.
- US dollar-pegged stablecoins account for 97% of the global stablecoin market, raising concerns in the EU about Trump’s plans to push dollar dominance through stablecoins.
➡️ US President Donald Trump’s executive order on the country’s leadership in digital financial technology has escalated the European Union’s concerns around US dollar dominance in the stablecoin market.
🗣️ European Central Bank (ECB) executive board member Piero Cipollone addressed the digital euro’s role in supporting Europe’s financial and strategic autonomy at a panel of the 13th ILF Conference on the Future of the Financial Sector in Frankfurt on Jan. 24.
- Cipollone expressed concerns over US dollar dominance in the stablecoin market, which is a major reason for the European Union to continue building its central bank digital currency (CBDC), the digital euro.
🇺🇸 US dollar stablecoins account for 97% of all stablecoins globally
💭 During the panel, Cipollone raised concerns over Europe’s growing reliance on international card schemes, which currently settle more than 60% of card payments in the EU.
- He also mentioned the rapid growth of mobile app payments in the EU, which saw their value share in day-to-day retail payment transactions grow from 1% in 2019 to 9% in 2024.
- Among other concerns, Cipollone referred to the overwhelming role of the US dollar in the stablecoin market. At the time of writing, dollar-backed stablecoins account for 97% of the global stablecoin market, which is valued at $215 billion, according to CoinGecko.
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