Italy Warns US Stablecoins Could Undermine Euro in Global Payments

Highlights:

• Italy warns that US dollar stablecoins pose a bigger risk to Europe than trade tariffs. 
• The EU is working on a digital euro to reduce its reliance on foreign-backed digital assets.
• US lawmakers are pushing new rules for stablecoins while Europe faces pressure to act faster.

Italy’s Minister of Economy and Finance, Giancarlo Giorgetti, has stated that dollar-backed stablecoins pose a serious risk to the eurozone. Speaking at an event in Milan, he said these assets are more dangerous than the trade tariffs introduced by the United States. He explained that stablecoins linked to the US dollar allow people in Europe to make cross-border payments without needing a US bank account.

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Italy warns U.S. stablecoins threaten euro’s financial sovereignty

Italy’s economy minister Giancarlo Giorgetti warned that U.S. stablecoin policies pose a greater threat to Europe than trade tariffs, arguing they could weaken the euro’s role in global payments, according to…

— CoinNess Global (@CoinnessGL) April 16, 2025

Giorgetti said the growing use of these digital assets in Europe should not be ignored because they weaken the euro’s presence in international finance. He pointed out that although tariffs often dominate public debates, the use of stablecoins presents a deeper challenge to the region’s monetary strength. 

He stressed that people and businesses are adopting these digital assets because they offer simple and fast transactions. At the same time, they are tied to the US dollar, which gives the United States an advantage in controlling digital finance across borders. He warned that the rise in use among Europeans could slowly reduce the euro’s use in international trade and payments. 

Piero Cipollone, a member of the European Central Bank’s Executive Board, also voiced concern. He supported the idea of reducing dependence on dollar-backed stablecoins. Piero wrote on April 8 that the eurozone should take strong steps to protect its monetary tools. He suggested creating a central bank digital currency. The CBDC would help preserve the strength of the euro in the long term. 

ECB: Boosting Strategic Autonomy Through the Digital Euro

ECB Executive Board member Piero Cipollone stated that a large share of digital payments in the EU relies on foreign providers, and the growing popularity of stablecoins further increases this vulnerability.

He warned… pic.twitter.com/mW4y1BgAJA

— CRYPTO OUTLOOK (@_crypto_outlook) April 10, 2025

Digital Euro Gains Attention as Europe Seeks Alternatives to US Stablecoins

In response to these concerns, the European Central Bank has continued work on a digital euro. This project could help people in Europe use a digital form of the euro for daily payments. It also aims to offer a stable and trusted alternative to private digital coins that are backed by foreign currencies.

Giorgetti said the euro needs to become a stronger option for cross-border payments. He explained that many users now turn to US-backed stablecoins because they are more efficient than traditional banking. He said this trend must be addressed before it creates deeper financial dependence on non-European systems. 

However, the plan for a digital euro has met resistance from commercial banks. They worry that customers could move their funds from private banks to the digital euro, which would be stored in wallets controlled by the European Central Bank. These banks believe that this shift could reduce their ability to give loans and offer credit to the public.

Meanwhile, the United States continues to shape its approach to stablecoins. On April 2, the US House Financial Services Committee passed the STABLE Act, which is now moving to the House floor for a vote. The bill would make sure stablecoin issuers share details about how they support their digital tokens.

Another bill, the GENIUS Act, calls for strict rules. It asks that stablecoin issuers hold full reserves, follow laws on financial crimes, and support the use of the dollar globally. This bill still needs approval from both chambers of Congress and the president. 

Europe Faces Pressure to Act on Digital Currency Shift

Giorgetti said the European Union must respond faster to changes in digital finance. He said that while the United States is building a clear path for digital currencies, Europe risks being left behind. He urged leaders to strengthen the euro’s use in both regular finance and digital systems so that Europe can protect its financial future.

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