While the US is accumulating Bit into its strategic reserve fund, Europe is focusing on developing the digital Euro (CBDC), expected to be launched in October 2025, amid concerns about the payment infrastructure.
The surprising decision of the Donald Trump administration to establish a national Bit reserve fund, using the proceeds of criminal activities, has attracted strong attention from the global financial community. However, it is noteworthy that there has been a near-silent reaction from European (EU) lawmakers to this game-changing move.
Meanwhile, the European Central Bank (ECB) remains steadfast in its plan to launch the digital Euro in October 2025, raising many questions about the long-term strategy of this region in the context of the growing importance of digital assets.
The silence of the EU may stem from its intense focus on CBDC. According to James Wo, CEO of the DFG investment fund, the ECB's hardline stance—as evidenced by President Christine Lagarde's statement about not including Bit in the national reserve—has somewhat shaped the direction of Europe.
However, the concentration on CBDC is taking place against the backdrop of a recent serious incident in the ECB's Target 2 (T2) payment system, which has disrupted transactions, leading observers to question the effective operation of a large-scale digital currency system.
In the opposite direction, President Trump has expressed a firm opposition to CBDC, arguing that this type of currency could become an excessive control tool of the government over citizens. The difference in approach reflects the polarization between the two economic powers regarding the development of digital assets.
Despite facing no shortage of skepticism, Ms. Lagarde has affirmed that the digital Euro will coexist with cash and be designed to protect users' privacy. However, lessons from Brazil—where the CBDC test code has revealed financial surveillance mechanisms—show that ensuring true privacy in a digital currency system remains a major challenge.
