EU Advances Digital Euro Legislation as Trump Interviews Pro-Crypto Fed Governor

EU Parliament Reviews Digital Euro Framework

The European Union is moving forward with detailed plans for a digital euro, with the European Parliament recently taking up the Commission's legislative proposal. The European Central Bank aims to introduce the digital currency by 2029, according to an 85-page document obtained by BTC-ECHO ^[1].

The proposal addresses several contentious issues that have emerged during the development phase, including the role of physical cash, programmability features, and data protection concerns. According to the draft legislation, the digital euro would be introduced as an additional payment method rather than a replacement for physical cash ^[1].

Driving European Payment Independence

The digital euro initiative is designed to reduce Europe's dependence on US technology giants in the payments sector ^[1]. The EU Commission plans to present the final proposal by the end of 2025 ^[1].

The legislative process involves collaboration between Brussels and Strasbourg, with lawmakers working to provide clarity on key policy questions that have raised concerns among European citizens ^[1].

Trump Interviews Pro-Crypto Fed Governor

In the United States, President Donald Trump is interviewing Federal Reserve Governor Christopher Waller for the position of Fed Chair, according to reports ^[2]. Waller, who joined the Fed's Board of Governors following Trump's nomination in 2020, is viewed as supportive of the cryptocurrency industry ^[2].

Waller has publicly characterized stablecoins as "simply a new form of private money" that will coexist with other payment instruments ^[2]. He has also proposed the concept of "skinny" Fed Master accounts that would provide crypto firms with limited access to the traditional financial system ^[2].

Fed's New Approach to Digital Assets

Speaking at the Federal Reserve's first payments-innovation conference in October, Waller signaled a shift in the central bank's stance toward digital assets. "I wanted to send a message that this is a new era for the Federal Reserve in payments — the DeFi industry is not viewed with suspicion or scorn," he stated ^[2].

Interest Rate Policy Considerations

The Fed Chair selection process comes amid broader debates about monetary policy. Trump has publicly criticized current Fed Chair Powell for insufficient aggression in cutting interest rates ^[2]. The Federal Reserve has implemented three consecutive rate cuts this year, bringing the benchmark rate to a range of 3.50% to 3.75% earlier this month ^[2].

Waller has been a prominent advocate for rate reductions. When the Fed maintained rates unchanged in July, he dissented in favor of a cut ^[2].

Market Outlook

Grayscale has indicated that Bitcoin could reach a new all-time high within six months ^[2]. The cryptocurrency market remains highly volatile, with prices subject to rapid fluctuations ^[2].

The parallel developments in Europe and the United States highlight the growing importance of digital currency policy at the highest levels of government and central banking. As the EU advances its digital euro framework and the US considers leadership that may be more favorable to crypto innovation, the regulatory landscape for digital assets continues to evolve.