Italy’s Economy Minister Flags US Stablecoin Policy as Bigger Threat Than Tariffs

The United States’ growing embrace of stablecoins as a mainstream payment method may pose a greater threat to European economic independence than traditional trade disputes, according to Italy’s Economy Minister Giancarlo Giorgetti.

Speaking at a financial forum on asset management in Milan, Giorgetti urged the European Union to take more decisive steps to strengthen the euro’s position on the global stage, highlighting concerns over the increasing fragmentation within the EU’s payments sector. Per Reuters, he emphasized that Europe’s response to emerging financial technologies, especially those driven by U.S. policy, should be swift and strategic.

“The general focus these days is on the impact of trade tariffs. However, even more dangerous is the new U.S. policy on cryptocurrencies and in particular that on dollar-denominated stablecoins,” Giorgetti said.

Stablecoins, digital assets typically pegged to the U.S. dollar, have become integral to the functioning of global crypto markets, providing a seamless bridge between cryptocurrencies and fiat currencies. According to Reuters, these digital tokens have seen explosive growth, raising regulatory questions across borders.

Giorgetti pointed out that these assets allow individuals to store value and make international payments without relying on traditional bank accounts tied to the U.S. financial system. Their accessibility and convenience could make them particularly appealing not only to those in volatile economies but also to eurozone citizens, he warned.

Related: New York Attorney General Urges Federal Cryptocurrency Regulation

“It is therefore easy to foresee their attractiveness for citizens of economies with unstable currencies, but its appeal for people of the euro zone should not be underestimated,” he stated, per Reuters.

The minister’s remarks come as former U.S. President Donald Trump signals a more lenient regulatory stance toward cryptocurrencies, in contrast to the tougher enforcement approach seen under the Biden administration. This potential policy shift has heightened anxieties in Europe over the expanding influence of U.S.-origin financial tools.

In response to the growing prominence of digital currencies like stablecoins, the European Central Bank is developing a digital euro. According to Reuters, the proposed central bank digital currency (CBDC) would allow EU citizens to open accounts with the ECB for both online and offline transactions, thereby offering a state-backed alternative to foreign digital assets.

“The digital euro will be essential to minimise the need for European citizens to resort to foreign solutions to access such a basic service as payment,” Giorgetti said.

However, European commercial banks remain cautious. There are concerns that the digital euro could lead to deposit outflows as individuals move funds into ECB-secured wallets, potentially weakening the traditional banking system.

Source: Reuters