- Italy’s Finance Minister Giancarlo Giorgetti has warned that US stablecoins pose a greater threat to European financial stability than trade tariffs.
- He, along with ECB officials, is urging swift action to advance the digital euro and protect the EU’s monetary sovereignty.
The U.S. trade tariffs have had a toll on crypto and the global markets. Many believe the tariffs have caused unprecedented chaos, but the situation may worsen. Italy’s Minister of Economy and Finance has put the limelight on another economic threat. Speaking at a recent event in Milan, the minister issued a stark warning about the growing influence of US dollar-backed stablecoins.
He stated that these digital assets could significantly erode the euro’s dominance in cross-border payments and undermine the continent’s monetary sovereignty. Despite the fact that political discourse often centers around the impact of tariffs. the minister noted that Stablecoins are silently rising and these could present a more deeper and complex challenge.
The real threat is not what’s grabbing headlines — it’s the financial instruments quietly shifting global influence,
he said.
He explained that US stablecoins provide European users with a convenient way to conduct international transactions in dollars, bypassing the need for a US bank account, and potentially weakening the euro’s role in the global economy.
In light of this, Giogretti called on the European Union for backup. He urged lawmakers to unite and create initiatives that will strengthen the Euro’s position as an inyternational currency.
Additionally, he pleaded with the law makers to support the European Central Bank’s (ECB) development of a digital euro.
It has been widely known that there has been an ongoing battle between the digital euro and Bitcoin.
The European Central Bank (ECB) is increasingly focused on the introduction of a digital Euro, precipitated by strategic shifts in global currency rather than purely technological innovation. This urgency stems from an executive order by the U.S. President Donald Trump aimed at consolidating the global influence of dollar-backed stablecoins.
According to Piero Cipollone, an ECB board member, this U.S. policy could potentially disrupt traditional banking structures and destabilize the European financial system.
According to Giogretti the upcoming digital euro, will be essential in providing a competitive, sovereign alternative to dollar-backed stablecoins in the evolving digital financial landscape.
Meanwhile, the digital Euro, as we have previously reported has faced a lot of growing public disinterest and criticism. On the other hand, U.S.’ latest move didn’t help the case.
On April 2, the House Financial Services Committee passed the STABLE Act (Stablecoin Transparency and Accountability for a Better Ledger Economy), which aims to impose strict transparency and reporting standards on stablecoin issuers.
Introduced by Committee Chair French Hill and Digital Assets Subcommittee Chair Bryan Steil, the bill mandates that issuers disclose how their stablecoins are backed and ensures greater regulatory oversight.
Additionally, the GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins) seeks to create a more unified regulatory framework. The proposed legislation would require one-to-one reserves, enforce anti-money laundering (AML) compliance, and enhance consumer protection, all while reinforcing the US dollar’s dominance in digital and global finance.
Giorgetti’s concerns are echoed by other European officials, including ECB Executive Board member Piero Cipollone, who recently warned about the unchecked rise of US stablecoins. In an April 8 article, Cipollone advocated for the launch of a digital euro, stating that it is vital to safeguarding the eurozone’s monetary autonomy.