Italy's Finance Minister Warns of US Stablecoin Threat to Euro

According to Cointelegraph, Italy's Minister of Economy and Finance, Giancarlo Giorgetti, has expressed concerns over U.S. stablecoin policies, suggesting they pose a greater threat to European financial stability than U.S. President Donald Trump's tariffs. Speaking at an event in Milan, Giorgetti highlighted the potential of dollar-backed stablecoins to undermine the euro's dominance in cross-border payments. He emphasized that while trade tariffs often capture media attention, the implications of U.S. stablecoin policies are "even more dangerous" for Europe. Giorgetti pointed out that U.S. stablecoins offer a widely accepted method for cross-border payments without requiring a U.S. bank account, making them increasingly appealing to Europeans. He cautioned against underestimating their growing popularity and urged European Union lawmakers to take decisive action to bolster the euro's position as an international currency. Giorgetti also noted the importance of the digital euro, currently under development by the European Central Bank (ECB), as a means to reduce reliance on foreign solutions. In the United States, stablecoin regulation remains fragmented, with multiple agencies applying existing laws rather than a unified framework. However, efforts are underway to address this, with several pieces of legislation advancing. On April 2, the U.S. House Financial Services Committee passed the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act, which now awaits a full vote in the House. Introduced by Committee Chair French Hill and Digital Assets Subcommittee Chair Bryan Steil, the bill mandates that stablecoin issuers disclose information about their businesses, including token backing. Additionally, the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act proposes rules requiring issuers to maintain one-to-one reserves, comply with Anti-Money Laundering (AML) laws, protect consumers, and enhance the dollar's global dominance. The GENIUS Act still needs approval from both chambers of Congress and a presidential signature to become law. ECB Executive Board member Piero Cipollone has also called on European lawmakers to counter the influence of dollar-backed stablecoins in Europe. On April 8, Cipollone published an article expressing concerns over the rising popularity of U.S. stablecoins and advocated for the introduction of a central bank digital currency to safeguard the eurozone's monetary sovereignty.