The ECB fears that a surge in U.S.-backed stablecoins could lead to a flight of European capital into U.S.
The European Central Bank (ECB) fears that Trump’s pro-crypto policies, particularly his support for U.S.-backed stablecoins, could destabilize Europe’s economy by causing a capital flight, as reported by POLITICO on April 22, 2025.
Stablecoins, like USDT and USDC, dominate the $240 billion market with 99% tied to U.S. dollars, per the World Economic Forum, posing a threat to the ECB’s monetary control as they compete with the planned digital euro.
The ECB’s warning clashes with the European Commission, which argues existing MiCA regulations—effective since June 2023—already mitigate such financial “contagion” risks, highlighting a deeper EU internal conflict over crypto regulation.
