Italy’s Minister of Economy and Finance, Giancarlo Giorgetti, has raised alarms over the growing influence of U.S. dollar-backed stablecoins in Europe. Speaking at an event in Milan, Giorgetti said American stablecoin policies pose a greater threat to European financial sovereignty than the trade tariffs once pushed by former U.S. President Donald Trump.
According to a Reuters report, Giorgetti warned that these digital assets could gradually weaken the euro’s role in global cross-border payments. He emphasised that while tariffs dominate public discourse, dollar stablecoins are “even more dangerous” for the EU’s long-term financial stability.
Stablecoins Offer Easy Dollar Exposure — Without a US Bank Account
Giorgetti pointed out that stablecoins allow individuals to gain exposure to the U.S. dollar without needing to open an American bank account. This, he said, increases their appeal to Europeans looking for efficient and widely accepted tools for international transactions.
He urged EU policymakers to step up efforts to boost the euro’s international usage and called the upcoming digital euro — currently in development by the European Central Bank (ECB)—a critical step in that direction.
US Pushes Ahead With Stablecoin Regulation
While Giorgetti criticised the threat of U.S. stablecoins, U.S. lawmakers are ramping up efforts to bring regulatory clarity to the sector. On April 2, the House Financial Services Committee passed the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act, which is now awaiting a vote on the House floor.
The bill, introduced in February by Committee Chair French Hill and Digital Assets Subcommittee Chair Bryan Steil, mandates that stablecoin issuers disclose critical business information, including details about token reserves.
Another proposed bill, the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, lays out comprehensive requirements for issuers. These include one-to-one backing of reserves, compliance with Anti-Money Laundering (AML) rules, consumer protection standards, and initiatives to strengthen the dollar’s global dominance.
The GENIUS Act still needs approval from both chambers of Congress and the President before it can become law.
ECB Voices Growing Concern Over Dollar-Backed Stablecoins
Giorgetti isn’t the only EU official voicing concern. ECB Executive Board member Piero Cipollone also sounded the alarm over the rising influence of U.S. stablecoins in the eurozone. In an article published on April 8, Cipollone called for greater urgency in developing a central bank digital currency (CBDC) to safeguard the euro’s monetary sovereignty.
Cipollone argued that without a digital euro, Europe risks becoming overly dependent on foreign private payment solutions, undermining the euro’s strategic autonomy in the global financial system.
