$USDC

The markets are experiencing sharp fluctuations between #USDC

and the euro due to the impact of President Trump's recent decisions, especially those related to strengthening the dominance of the dollar through stablecoins. In January 2025, Trump issued an executive order supporting the development and adoption of stablecoins backed by the US dollar, raising concerns in the European Union about the dollar's supremacy in the global digital market. This led to an increase in demand for USDC, with its trading volume rising to $23 billion in 2024, driven by regulatory compliance in Europe.

The retention of large amounts of USDC by traders reduces liquidity in other markets, increasing exchange rate volatility, especially between USDC and the euro. Additionally, the strengthening of the dollar through stablecoins may lead to a capital shift from the euro to the dollar, weakening the euro and increasing volatility in this pair.

In this context, the European Central Bank is working on developing a digital euro to counter the digital dominance of the dollar, in an attempt to maintain the financial independence of the European Union.