European Central Bank Chief Economist Warns of US Financial Dominance

European Central Bank Chief Economist Philip Lane warned that Europe must develop a digital euro to counter growing American influence over the continent's financial system [alternative source] amid escalating geopolitical tensions. Lane specifically cited Europe's 'current dependence on US payment-card providers Visa and Mastercard, as well as technology companies including PayPal, Apple and Google' as a vulnerability requiring urgent action.

His comments come as President Donald Trump's administration promotes dollar-backed stablecoins worldwide as part of a broader cryptocurrency strategy, alarming European officials. ECB Governing Council member Francois Villeroy de Galhau recently cautioned that 'the US risks bringing about the next financial emergency through its support of cryptocurrencies.'

'The digital euro is not just about adapting to the digital age. It is about ensuring Europe controls its monetary and financial destiny,' Lane told a conference in Ireland, noting that a digital currency would 'limit the likelihood of foreign-currency stablecoins gaining a foothold' in Europe.

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