European Official warns Against U.S. Crypto Policies
On March 10, 2025, Pierre Gramegna, the managing director of the European Stability Mechanism, voiced concerns about U.S. crypto policies. He fears these policies, especially those supporting USD-denominated stablecoins, could threaten the EU’s financial stability and sovereignty.
Gramegna’s worries echo the challenges faced by Facebook’s Libra/Diem project. The project faced legal hurdles and skepticism from governments. Now, with the U.S.administration’s pro-crypto stance, tech giants might attempt similar projects. This could disrupt the eurozone economy. During a Eurogroup press conference, gramegna highlighted the risks. He believes tech companies might try to introduce their own digital currencies, similar to Facebook’s failed Libra/Diem initiative. The U.S. government’s crypto-friendly approach could encourage such efforts. The U.S. administration now sees cryptocurrencies as a path to global leadership. This shift could lead to new attempts at launching mass payment systems using stablecoins. Reuters quotes Gramegna, stating that the U.S. administration’s support for cryptocurrencies could revive plans for mass payment solutions based on dollar-backed stablecoins. If accomplished, these could siphon liquidity from the euro, benefiting the U.S. economy instead.
These systems could draw users away from conventional banking, impacting Europe’s financial landscape. With millions of daily facebook users in Europe, a successful launch could redirect financial flows to the U.S., undermining the euro’s role.
Such systems could pose a threat. Thay might divert funds from euros to dollars,weakening Europe’s financial independence. For instance, Facebook’s 260 million daily European users could shift to U.S.-based payment methods. This could centralize financial power in U.S. hands,affecting europe’s monetary control. The potential impact is meaningful. If Europeans adopt U.S. stablecoins, it could destabilize
