The U.S. Dollar and Currency Policy under the Trump Administration

With macroeconomic conditions evolving rapidly and questions surrounding the U.S. dollar dominance and monetary sovereignty gaining prominence, our next joint workshop will explore the strategic and institutional implications for Europe and the international financial system.

The workshop will consist of two sessions, with a coffee break in between:

Session 1: Unsafe Haven? The U.S. Dollar as a Reserve Currency 

The first panel explores the future of the dollar’s global dominance as a reserve currency in light of geopolitical competition, recent – and widely debated – shifts in U.S. economic policy, and heightened global financial market volatility. Bringing together perspectives on domestic institutions and policies, financial market dynamics, and the international monetary system, the panel will examine the key factors likely to shape the dollar’s future global role.

The panel will also consider the extent to which viable alternatives to the dollar exist. Why has the European Union thus far struggled to translate its economic weight into monetary power, and what institutional, political, and financial reforms would be required to make the euro a more attractive reserve currency and achieve financial sovereignty over the longer term?

Session 2: Crypto, Stablecoins and the Future of the U.S. Dollar’s Role in Clearing and Settlement 

The second panel explores how cryptocurrencies and, increasingly, stablecoins are reshaping the future of the dollar’s role in global clearing and settlement. While the EU is pursuing a more central bank-led framework for digital money, the United States is increasingly open to a largely private-sector-driven ecosystem. This potential bifurcation raises important questions about financial stability and the future architecture of global payments. We aim to examine both the strategic opportunities and risks that crypto assets and dollar-backed stablecoins may create for financial markets. From a risk perspective, the panel will shed light on the potential implications for the dollar’s centrality in the global financial system and the United States’ future capacity for effective sanctions enforcement.

Speakers:

• Quentin Buckholz, U.S. Treasury/ TFI Representative to Germany, U.S. Department of of the Treasury
• Prof. Mark Copelovitch, Ph.D., Professor of Political Science & Public Affairs|International Relations, University of Wisconsin – Madison
• Kolja Gabriel, Member of the Executive Board Bankenverband
• Dr. Maximilian Krahé, Research Director, Chairman, Dezernat Zukunft e.V
• Dr. Holger Schmiedling, Chief Economist, Joh. Berenberg, Gossler & Co. KG
• Parinaz Khademi, Senior Economist, Digital Euro, Deutsche Bundesbank

Moderators:

• Julia Friedlander, CEO, Atlantik-Brücke
• Dr. Laura von Daniels, Senior Fellow, Division „The Americas“ SWP

We would like to thank SWP for the collegial collaboration and generous hospitality.

This workshop series is made possible by the generous support of the Planning Unit of the German Federal Foreign Office.