Italian Minister of Economy and Finance Warns: U.S. Stablecoin Policy Poses a Greater Threat than Tariffs

According to a report by Reuters

Italy’s Minister of Economy and Finance Giancarlo Giorgetti stated on Tuesday that the United States’ stablecoin policy provides an attractive cross-border payment method for European citizens, which should be a greater concern than trade tariffs.

Speaking at an asset management event in Milan, Giorgetti remarked that EU authorities should take further measures to enhance the euro’s status as an international reference currency, while criticizing the overly fragmented payment industry within the EU. He stated:

Giorgetti pointed out that stablecoins would offer savers the opportunity to invest in risk-free assets and become a widely accepted means for cross-border transactions without the need to open accounts in American banks. “Thus, it is not difficult to foresee their appeal to people in economies with unstable currencies, but their attractiveness to citizens in the eurozone should not be underestimated.”

In order to strengthen Europe’s sovereignty in the payment system and maintain the role of fiat currency amid the rise of stablecoins, the European Central Bank (ECB) is promoting the digital euro project, which envisions EU residents having digital euro accounts provided by the ECB, usable for online payments, in-store purchases, or transfers between friends in collaboration with local payment providers.

Giorgetti stated, “The digital euro will be crucial in minimizing European citizens’ reliance on foreign solutions for accessing essential services such as payments.” However, there are concerns within the European banking sector regarding the digital euro, fearing that customers might transfer part of their cash into digital wallets backed by the ECB, potentially leading to a loss of bank funds.

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