US Stablecoins: A Quiet but Serious Threat

Speaking at an event in Milan, Giorgetti emphasized that US stablecoins are rapidly gaining popularity among European citizens. These assets allow users to make cross-border transactions without opening a US bank account, which he says could undermine Europe’s financial sovereignty.

“Tariffs may grab the headlines, but the real risk lies elsewhere. These digital assets seriously threaten the euro’s position in international payment systems.” – Giancarlo Giorgetti

Digital Euro: Europe’s Native Alternative

Giorgetti also underlined the importance of the digital euro project developed by the European Central Bank (ECB). He stated that this initiative is a strategic step to prevent Europeans from relying on foreign digital solutions.

The digital euro aims to strengthen Europe’s financial independence in both everyday transactions and international payments.

US Moves Toward Stablecoin Regulation

While a comprehensive legal framework for stablecoins is still lacking in the US, significant steps are being taken:

• The STABLE Act (Stablecoin Transparency and Accountability for a Better Ledger Economy) would require stablecoin issuers to disclose information about their reserves and financial operations.

• The GENIUS Act proposes that issuers must maintain one-to-one asset backing, comply with Anti-Money Laundering (AML) regulations, and protect consumer rights.

Both bills are awaiting votes in the US Congress. If passed, they would bring a more structured and transparent environment for stablecoins.

ECB Warns: “Monetary Sovereignty at Risk”

Piero Cipollone, Executive Board Member of the ECB, echoed Giorgetti’s concerns. In a recent article, he pointed out the long-term risks of US dollar-backed stablecoins gaining ground in Europe.

According to Cipollone, the introduction of a central bank digital currency (CBDC) like the digital euro is crucial to safeguard the eurozone’s monetary sovereignty.

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