Italian Finance Minister, US Warning On Stablecoins…"More Dangerous Than Trump's Tariffs"

Giancarlo Giorgetti Italy Minister Of Economy And Finance (Source: EPA)

The Italian Finance Minister warned that the potential threat of the United States' stablecoin policy to the European economy could be more serious than President Donald Trump's tariffs. He urged swift introduction of the Digital Euro to protect the financial sovereignty of the European Union (EU).

At an event held in Milan, Italy, Minister Of Economy And Finance Giancarlo Giorgetti stated, "While trade retaliations have gained attention, U.S.-origin stablecoins are emerging as a more dangerous factor threatening European financial stability." He particularly noted that the dollar-based stablecoin could weaken the international status of the Euro as it enables cross-border payments for European users without a U.S. bank account.

Minister Giorgetti emphasized that developing a Digital Euro is essential to maintain Europe's financial autonomy, and claimed that the central bank digital currency (CBDC) project being conducted by the European Central Bank (ECB) would be key to reducing reliance on overseas payment methods. He urged the European Parliament to prepare policies that could expand the international influence of the Euro along with the introduction of the Digital Euro.

ECB Executive Board Member Piero Cipollone recently expressed a similar stance. In a column released on April 8, he expressed concern over the rapid spread of U.S. stablecoins within Europe, stressing the urgency of introducing a Digital Euro to protect the Eurozone's monetary sovereignty.

Meanwhile, in the United States, regulatory legislation related to stablecoins is being actively pursued. On April 2, the U.S. House Financial Services Committee passed the 'STABLE Act', which contains major contents such as the operation method and transparency assurance for stablecoin issuers' reserves. Additionally, the 'GENIUS Act' aims to require 1:1 reserve holdings for issued assets, compliance with anti-money laundering (AML), consumer protection, and strengthening the dollar's global dominance. Both bills still require final approval by Congress and the President's signature.

Within Europe, separate from these legislative movements in the U.S., voices viewing the spread of dollar-based digital assets as a structural threat to the Eurozone financial system are growing.