European officials are considering centralizing the dollar to drop reliance on the Fed.

According to BlockBeats news, on November 14, European financial stability officials are discussing whether to create an alternative funding support mechanism to the Fed, which would centralize US dollars held by central banks outside the United States. Under Trump's administration, central banks around the world have been attempting to reduce their dependence on the US. The relevant mechanisms of the Fed provide dollar loans to other central banks, acting as a lifeline during times of market stress to ensure global financial stability. Interviews with more than a dozen European central bank and regulatory officials show that they are concerned that these mechanisms may be “weaponized” by the Trump administration. European officials' concerns rose around April but then eased due to assurances from the Fed. The practice of centralizing dollars faces practical difficulties and may be unfeasible. A White House spokesperson stated that Trump has “repeatedly reaffirmed his commitment to maintaining the strength and influence of the dollar.” (Jin10)