Eurozone finance ministers have raised concerns over the United States' shift towards embracing cryptocurrencies, warning that it could pose risks to Europe's monetary sovereignty and financial stability.

The discussion follows President Donald Trump's executive order to establish a strategic reserve of cryptocurrencies using government-owned tokens, signalling a major policy shift from the previous administration.

Officials stressed the importance of accelerating the European Central Bank's plans to launch a digital euro to maintain control over the region's financial system.

The head of the European Stability Mechanism, Pierre Gramegna, warned that the United States stance could encourage major technology firms to relaunch digital payment systems using dollar-backed stablecoins, potentially challenging the euro's dominance in the global financial system.

Eurozone leaders are concerned that a resurgence of stablecoin-based payment platforms could undermine the euro and increase reliance on US-backed digital assets.

Policymakers emphasised that Europe must take proactive steps to safeguard its financial autonomy, ensuring that the euro remains a strong and stable currency in an increasingly digital economy.