TechFlow news — On January 24, according to Reuters, European Central Bank (ECB) executive board member Piero Cipollone said eurozone banks need a digital euro to respond to former U.S. President Trump's initiative to promote stablecoin development.
Earlier, in an executive order issued on Thursday, Trump stated he would "advance the development and growth of legitimate dollar-backed stablecoins globally."
Cipollone noted that Trump's policy could further drive customers away from banks, reinforcing the necessity for the ECB to launch its own central bank digital currency (CBDC).
The ECB is currently testing practical implementations of a digital euro, though a final decision will only be made after relevant legislation is approved by European lawmakers.
