Source: European Parliament
We discuss the possible effects of the US administration’s Digital Assets Strategy (DAS), on the US and Europe. If pursued consistently over time, DAS would tend to weaken the Fed’s payments oversight and monetary control mechanisms, with possible adverse consequences including for the dollar’s international role. Europe’s monetary sovereignty is unlikely to be affected. To ensure that it is indeed the case, the EU crypto markets regulation (MiCA) and the euro’s legal tender status may need strengthening. While wholesale CBDCs would benefit the cross-border payment infrastructure, the digital euro in itself would not contribute significantly to protecting Europe’s monetary sovereignty.