The European Central Bank (ECB) has expressed alarm over the potential destabilizing effects of aggressive U.S. crypto policies, particularly those concerning dollar-backed stablecoins in the eurozone. The ECB’s concerns stem from fears that increased US support for cryptocurrency could challenge Europe’s financial system and undermine its monetary sovereignty. While some see a need for more robust regulation, others argue that existing rules are sufficient to mitigate potential risks. 🇺🇸 President Donald Trump, who supports expansion of the US stablecoin market, has been pushing for these changes. A key concern is the potential shift in savings from euros to dollars, which could weaken EU monetary independence and expose European banks to redemption risks, according to ECB President Christine Lagarde. The debate surrounding this issue highlights the ongoing tension between financial innovation and regulation within Europe. The US government is aiming for a $2 trillion stablecoin market by 2028, sparking concerns in the EU. According to industry experts, EU regulations, heavily influenced by legacy finance models, are hindering stablecoin innovation. The potential ramifications of these policies are still being debated, but policymakers remain vigilant about their long-term effects. ”, “