According to Economy Minister Giancarlo Giorgetti, U.S. policy on dollar-backed stablecoins poses a greater threat than tariffs.
As reported by Reuters, during an asset management event in Milan, Italian Economy Minister Giancarlo Giorgetti voiced concerns that go beyond the ongoing debate over trade tariffs, identifying U.S. dollar-denominated stablecoins as a more insidious threat.
According to Giorgetti, while public attention is focused on tariffs, the new U.S. approach to cryptocurrencies—particularly to stablecoins pegged to the dollar—presents a more serious danger. “Even more dangerous is the new US policy on cryptocurrencies and, in particular, that on dollar-denominated stablecoins,” the Minister told attendees.
Initially used mainly for crypto trading, stablecoins have evolved into tools for cross-border transactions between digital and traditional currencies. Their ease of use and ability to operate across national borders make them especially attractive to eurozone citizens.
The Minister emphasized that such financial instruments allow individuals to invest in assets perceived as low-risk without needing a traditional American bank account, effectively bypassing the European financial system.
Europe’s payment infrastructure fragmentation
Giorgetti pointed out the fragmentation in the EU’s payment infrastructure, urging European institutions to find solutions to strengthen the euro as a continental reserve currency. In this context, he praised the European Central Bank’s efforts to develop a digital euro, which he sees as crucial to improving the EU’s fiscal independence.
“The digital euro will be essential to minimize the need for European citizens to resort to foreign solutions to access such a basic service as payment,” the Minister noted.
According to the ECB, a digital euro would allow EU residents to hold accounts directly with the central bank and manage daily transactions such as online purchases, in-store payments, or peer-to-peer transfers.
However, some European banks fear that the digital euro could divert customer deposits away from commercial banks to wallets controlled by the ECB, potentially threatening the region’s financial stability.
