The Trump administration's growing embrace of cryptocurrencies and stablecoins is causing concern in Europe, particularly as the European Central Bank (ECB) is still undecided on launching a digital euro. European officials warn that this could threaten Europe's financial sovereignty and undermine the euro's dominance. Trump recently signed an executive order setting up a Bitcoin reserve and storage system for seized crypto assets, integrating it into the U.S. government's financial system. Meanwhile, the ECB is developing a digital euro, but its final decision is still months away. The European Stability Mechanism (ESM) believes the EU needs to launch the digital euro soon to protect its monetary autonomy. However, not all European leaders agree on how to approach crypto, with ECB President Christine Lagarde stating that Bitcoin will never be part of the EU's official reserves, while the governor of the Czech National Bank (CNB) has expressed interest in exploring Bitcoin investments. Germany's Bundesbank president compared Bitcoin to the Tulip mania that crashed the Dutch economy in the 1600s and stated that reserve assets must be secure, liquid, and transparent.



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