EU finance ministers are growing increasingly concerned about the impact of the US embracing crypto assets on Europe's financial stability. What is this all about? Are they concerned about the strategic Bitcoin reserve? Not really. It is primarily about the favourable regulatory environment in the US that will USD stablecoins to thrive. What does this mean? The US dollar is the world reserve currency, so there is a lot of global demand for it. However, your access to US dollars may be limited depending on your situation. Now, with USD stablecoins, you can more easily access US dollars. The US’s embrace of crypto will accelerate developments in this area. USD stablecoins are backed by Dollars directly or, e.g., US treasuries (the latter provides returns for issuers, making them more attractive). -> Both strengthen US dollar dominance The EU fears that this will lead to a decline in the relevance of the Euro on the global stage. Possibly one reason they push for a digital euro (at least, this is one reason) is the hope that it will remain an alternative on the global stage; however, in my view, this is a futile endeavor. Compared to "decentralized" stablecoins, it will be much more constrained (with deposit limits, cross-border restrictions, and limitations on who can use it, etc.). However, it is also something that should not be embraced for other reasons, see my latest post. The euro will also lose globally as it has become politicised. Although the ECB may seem independent, we are just one sovereign debt crisis away from the ECB being forced to intervene and buy up sovereign debt again. The US having the world reserve currency provides it with significant global power, which it can use for the betterment of the world—or not. Particularly recently, this has become unclear. In times when it is less clear whether the issuer of the world’s reserve currency has the world's best interests in mind, wouldn’t it make sense for the rest of the world to adopt a neutral reserve asset that is not directly controlled by a single nation? Wouldn’t creating an environment where Bitcoin businesses can thrive make sense?