Italian Economy Minister Giancarlo Giorgetti has warned that the new US policy on so-called stablecoins poses a much greater threat to Europe than the duties promised by Donald Trump. His statement was quoted by Reuters after the official’s speech at a financial conference in Milan.
“Everyone is focused on tariffs, but even more dangerous is the US policy on cryptocurrencies, in particular dollar-denominated stablecoins,” Giorgetti said.
Stablecoins are cryptocurrencies whose exchange rate is pegged to a stable currency (usually the US dollar), which reduces the volatility typical of classic crypto assets. They have become a key tool in the global crypto industry, facilitating transactions between digital assets and fiat money.
However, the EU, according to the minister, should not ignore the growing popularity of stablecoins among its citizens – both because of the stability of the dollar and the convenience of transfers without the need for bank accounts in the United States.
Giorgetti:
“Stablecoins are particularly attractive for countries with unstable currencies, but even eurozone residents are increasingly using them as an alternative to the euro.”
In order not to lose control of the European financial ecosystem, the European Central Bank is developing a digital euro that will allow citizens to have their own accounts with the ECB for online payments, purchases and transfers.
“The digital euro will be critical to ensure that Europeans do not look for third-party (and often foreign) payment solutions,” the minister said.
However, banks fear that the launch of the digital euro will lead to a massive outflow of funds into ECB-guaranteed digital wallets, which will jeopardise their liquidity.
