The European Central Bank claims that the pro-Crypto position of US President Donald Trump could trigger instability without stronger European guarantees.
The European Central Bank and the European Commission are locked in a dispute as to whether the new European Union cryptography rules can resist the financial risks linked to the return of Donald Trump.
According to a political document seen by Politico, the ECB warned that Trump’s support for the American cryptography industry could trigger a financial “contagion” and said that the cryptographic asset regulation markets required urgent changes. According to the central bank, the regulations are too soft on the “multi-event” model, where the European and non-European transmitters of Stablecoin work together.
The boss of the ECB, Christine Lagarde, stressed that Mica should change and imply that the single threat posed by the Stablecoins was “understood” by the Commission and other institutions of the European Union.
However, the Commission has strongly rejected, as in its own article seen by Politico, it declared that the risks resulting from these global stables “seem overestimated and are manageable in the existing legal framework”.
An EU official told Politico that ECB’s concerns were based on a “fundamental bad reading” of the Mica and added that the idea of a traditional race on an active active one by one was “absurd”. The official also accused the ECB of “the hyping of the threat of Stablecoin” to win the support of his digital euro project, which should be launched by October.
The ECB fears that an increase in the stablecoins supported in dollars – which already dominates the market – can put European capital in American debt and harm the financial independence of the European Union. He also warned that European issuers could be forced to buy European and foreign tokens, risking a “race” on reserves.
