EU Official Warns of U.S. Crypto Policies Impact on Eurozone
On March 10,2025,Pierre Gramegna,teh managing director of the European Stability Mechanism,voiced concerns about the U.S. government’s pro-crypto stance. He fears it could harm the EU’s financial stability adn sovereignty, especially with USD-denominated stablecoins.
Gramegna’s concerns echo the failed Facebook Libra/diem project.The tech giant’s attempt to launch a crypto was thwarted by legal issues and cautious government attitudes. Now, with the current U.S. administration favoring cryptocurrencies, similar projects might re-emerge.
During a Eurogroup press conference, Gramegna noted that tech giants could try launching their own cryptocurrencies. This could lead to mass payment solutions based on dollar-denominated stablecoins, potentially destabilizing the EU’s financial system.
Payment systems from social media platforms with large user bases could significantly impact the EU’s financial stability. As a notable example, Facebook has 260 million daily users in Europe, nearly 35% of the EU population. If these users adopt such payment systems, it could redirect liquidity from euros to the U.S. economy.
European countries might block such initiatives, as thay did with Facebook’s Libra.however, if implemented elsewhere, it could expand U.S.influence. The solution, according to Gramegna, is the European Central Bank’s digital euro project. he emphasized the urgency of this work, stating, “Digital Euro is more necessary today than ever.”
While euro-denominated stablecoins are far behind in market cap and demand, the digital euro could lead Europe in CBDCs. This could reduce U.S. influence and enhance European financial autonomy.
