U.S. Stablecoins: Bigger Threat Than Trade Tariffs?
Italian Minister of Economy Giancarlo Giorgetti warned that stablecoins pegged to the U.S. dollar can destabilize the euro more than tariffs. Speaking to an audience in Milan, he further said that Washington’s policy on cryptocurrency poses an underestimated risk to European financial sovereignty.
Giorgetti explained how dollar-pegged stablecoins allow for the transfer of money and payments without engaging with U.S. financial institutions. This provides a gateway for Europeans to hold and spend dollars, weakening the significance of the euro in the process.
European Confidence in the Euro at Stake
Dollar-denominated stablecoins especially have become vital tools for crypto trading and cross-border finance. Giorgetti pointed out that if they are used more by Europeans, it would threaten the euro’s role as a store of value and medium of exchange.
The concern has grown as stablecoin use expands even in countries with relatively stable currencies like those in the eurozone.
EU Response: Digital Euro Becomes More Urgent
In response, the European Central Bank is pushing the digital euro project. It suggests a state-owned digital currency available through ECB-linked accounts, for payments, online transactions, and person-to-person transfers.
Its objective is to defend the euro’s role and reduce Europe’s dependency on foreign-controlled financial systems.
U.S. Lawmakers Move Forward with Stablecoin Regulation
Meanwhile, the U.S. House Financial Services Committee has approved the STABLE Act, which aims to create a regulatory framework for stablecoin issuers. The bill involves licensing, reserves, and audits.
Reps. French Hill and Bryan Steil introduced the bill and is a reflection of Washington’s appetite to further regulate digital dollar tokens.
Conclusion
Giorgetti’s remarks underscore a growing transatlantic tension over digital finance. As stablecoins reshape global money flows, Europe is pushing back—determined to defend its monetary autonomy through regulatory reform and a digital euro.
