Trump took office with a destructive dance—his unpredictable behavior, both at home and abroad, hindered the dollar’s position as a reserve currency as a choice. In the cryptocurrency world, this means only one thing – the stable protein of the dollar fixed will dominate, giving a vacuum to other currencies. Among them, this may just be Rapid growth EUR coins have the largest muscle.
Let’s take a step back. Since Trump took office, the dollar’s currency has dropped to a three-year low, down about 5% in the past six months. Whimsical trade policies, ruthless fiscal bets, and overall, the combination of international confrontation has put the U.S. market in a difficult situation, creating stocks, increasing the yield on Treasury bills, and bringing the axe to the dollar. The importance of the United States as the most powerful and stable economy has been tested. As a result, we even saw the deal “anywhere, but the United States”.
With the U.S. economy and markets so volatile, investors fled as usual to safe haven assets such as gold to mitigate any losses. But surprisingly, the euro has also improved its ranking: gold, the yuan and the euro are now viewing as alternative reserve assets, according to Reuters, according to the latest report from global central bankers. The world is diversifying from the US dollar, which will definitely be reflected in defi.
Of course, that being said, I’m not talking about mature overtaking here.
In the Stablecoin world, the dollar is the king. Tether dominated nearly 70% of the market, and we even saw Circle become the headline for a $5.4 billion IPO. But as the dollar drops – especially in the losses to emerging markets and the G10, I just think the market will expand. The dollar monopoly may not be that strong.
Currently, there are 12 outstanding European mayonnaise and $56 peers – a huge difference.
But with the loss of the euro and gaining further strength, who said these coins would not compete? With enthusiastic fiscal policy, stronger defense spending and of course the momentum of capital flows, the euro has climbed to a critical $1.20. And if Trump continues on the road ahead, I hope this will only climb further.
This is not only a trend that causes dollarization. The EU has become increasingly open to cryptocurrencies, and this year consolidates the final terms of the Mica framework – enabling crypto issuers to obtain licenses and establish licenses in regulated European markets. Tether is not in line with mica and offers alternative coins (including Eurc’s Eurocurrency, such as Eurc), an opportunity to strengthen its regional market share.
Therefore, the EU then took a more favorable and supportive position against crypto issuers. OKX, Crypto.com, Coinbase, and perhaps even Gemini are exchanges that are crypto issuers and soon-to-be-approved. Forgot Trump’s vows make the United States “the crypto capital of the earth.” The EU is catching up quickly.
Europe is no longer an anti-innovation, it was once a bureaucratic monster. It has moved away from the skepticism of the past and opened the door to digital assets, among other things, according to Christine Lagarde, ambitious enough to drive its “global euro moment”. It does take advantage of Uncle Sam’s misfortune, which I don’t think would reflect in a stable market for that there is no reasonable reason.
I understand that attitudes towards stablecoins are still mixed. International settled bank recently Abandon them As a “financial stability risk”. Even so, the global market capitalization of the broad ecosystem has recently peaked at more than $250 billion. The size, popularity and appeal of the market are undeniable. Of course, they are certainly more practical than tokenized currencies, as BIS’s Agora tries to push forward.
So, I can’t see the Stablecoin market signing soon. And, as long as Trump continues his strong approach, Europe exploits the consequences, I can only see issuers getting closer and closer to euro-based coins. Complete debtization is far from reality, but as long as the euro maintains its upward trajectory, investments and transactions will also be made through the mainland and its currency.
By 2028 – I mean, the end of Trump’s term – I expect we’ll see more European carpenters surface, and that’s so much that they’ll even threaten their American counterparts. The risk of a recession, the risk of a bear market, and overall, the lack of investor confidence has brought the dollar to a low price.
Time in Europe is now.
