Italy’s finance minister Giancarlo Giorgetti has raised serious concerns about the growing influence of US dollar-backed stablecoins in Europe, calling them a greater threat to European financial stability than President Donald Trump’s tariffs. Speaking at an event in Milan, Giorgetti warned that these digital assets could weaken the euro’s dominance in global transactions by offering European users a convenient alternative for cross-border payments without requiring a US bank account.

He urged European lawmakers to take swift action to reinforce the euro’s position internationally, pointing to the upcoming digital euro—currently being developed by the European Central Bank (ECB)—as a critical tool to curb Europe’s reliance on foreign digital currencies.

Meanwhile, US lawmakers are pushing forward with stablecoin regulations. The House Financial Services Committee recently passed the STABLE Act, which mandates transparency from stablecoin issuers, including disclosure of how tokens are backed. The bill now moves to the House floor for a vote.

Another proposed bill, the GENIUS Act, would enforce strict reserve requirements, compliance with anti-money laundering rules, and consumer protection measures—further entrenching the dollar’s global dominance through stablecoins.

Adding to the alarm, ECB Executive Board member Piero Cipollone published an article on April 8 urging the EU to fast-track the development of a digital euro. He warned that dollar-backed stablecoins threaten the eurozone’s monetary sovereignty and emphasized the need for a central bank digital currency to counterbalance the rising influence of US crypto assets in Europe.