Giancarlo Giorgetti believes US stablecoin policies pose a more significant threat to European financial stability than trade tariffs.

Giorgetti explained that US stablecoins allow Europeans to make cross-border payments and investments in US dollars without needing to open American bank accounts. He highlighted the growing appeal of these stablecoins among European users and urged European Union lawmakers to take decisive action to strengthen the euro’s global position.

He emphasised the importance of the digital euro, which is currently under development by the European Central Bank (ECB). Giorgetti believes that a digital euro will help reduce Europe’s reliance on foreign digital payment solutions and protect the eurozone’s monetary sovereignty.

The concerns from Italy’s finance minister come as US lawmakers push forward with new stablecoin regulations. On April 2, the US House Financial Services Committee passed the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act. If enacted, this legislation will require stablecoin issuers to provide detailed information about their reserves and operations. Another bill, the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, seeks to ensure that stablecoins are fully backed by reserves and comply with anti-money laundering rules. Both bills aim to reinforce the US dollar’s dominance in the global digital economy.

Piero Cipollone, a member of the ECB’s Executive Board, echoed Giorgetti’s concerns in a recent article . Cipollone called for urgent action to counter the growing popularity of US stablecoins in Europe, suggesting that the launch of a central bank digital currency is crucial to safeguarding the euro’s future.

Meanwhile, The US is exploring new ways to increase its Bitcoin reserves, including using tariff revenue and revaluing gold certificates. The administration is also developing a digital asset framework, aiming to position the US as a leader in cryptocurrency innovation.

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