Italy Says U.S. Stablecoin Policy Poses Greater Threat Than Tariffs, Urges EU to Defend Euro

Italy’s Economy Minister Giancarlo Giorgetti has raised alarms over the United States’ policy shift on stablecoins, suggesting it could pose a greater threat to Europe than trade tariffs. Speaking at an asset management event in Milan, Giorgetti emphasized the need for the European Union to strengthen the euro’s global role and address the fragmentation within the EU payments system.

Giorgetti’s comments follow U.S. President Donald Trump’s push to ease regulations on cryptocurrencies and reverse the restrictive measures introduced under President Joe Biden. The growing influence of dollar-backed stablecoins—cryptocurrencies pegged to the U.S. dollar that are widely used in crypto markets for transactions and liquidity—was a key concern raised by the minister.

“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.

He warned that these digital assets present an attractive option for consumers, offering a stable investment and a convenient cross-border payment method without the need for a U.S. bank account.

“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 added.

In response, the European Central Bank (ECB) is accelerating work on the digital euro project to safeguard monetary sovereignty and offer an EU-based alternative. This initiative would allow eurozone residents to open digital euro wallets directly with the ECB, enabling them to make online purchases, pay in stores, or transfer money through partner payment providers.

“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 emphasized.

However, the project faces resistance from European banks, which fear the shift to ECB-managed wallets could reduce their deposit base as customers opt for the security of a central bank-backed digital currency.