Europe, Concerned About 'Weakening Euro Financial Sovereignty' Due to U.S. Digital Asset Policies

# U.S. Digital Asset Policy Raises Concerns Over Euro’s Status The Trump administration’s aggressive push to adopt digital asset policies has sparked growing concerns in the European Union (EU) regarding the status of the euro. On the tenth, European financial authorities warned that the United States’ approach to digital assets could weaken Europe's financial sovereignty. The concern is particularly acute over the proliferation of dollar-based stablecoins and the potential integration of Bitcoin into the institutional financial framework, which could jeopardize the euro’s standing. Recently, President Trump has intensified efforts in digital asset policy. He announced digital assets for national strategic reserves and signed an executive order to stockpile approximately 200,000 seized Bitcoins. Additionally, the U.S. Securities and Exchange Commission (SEC) has rolled back lawsuits against firms and is reviewing the approval of digital asset ETFs, signaling a softer regulatory stance towards digital assets. In contrast, Christine Lagarde, President of the European Central Bank (ECB), stated in January that Bitcoin could not serve as a reserve asset for Europe. As digital assets begin to be considered for national reserves in the United States, a variety of opinions have emerged within Europe. Ales Michl, Governor of the Czech National Bank (CNB), stated last December that Bitcoin could be considered as a reserve asset. Notably, the Czech Republic is an EU member but does not use the euro. Michl's statement has sparked debate within European financial circles over the potential institutional integration of Bitcoin. In Germany, there has been a call to examine the possibility of introducing Bitcoin as a national reserve asset. However, Joachim Nagel, President of the German Bundesbank, has drawn a clear line, stating, "Reserve assets must be safe, highly liquid, and transparent. Bitcoin does not meet these criteria." Meanwhile, the EU has been working on the development of a digital euro since 2021. The shift in U.S. policy has led to increased calls within Europe to accelerate the introduction of a digital euro. The ECB has announced plans to complete the procedures for launching the digital euro by October of this year.