Italian Economy Minister Giancarlo Giorgetti expressed concerns about the impact of U.S. stablecoin policy on the European economy.
Minister's Warning About Threats
At an asset management event in Milan, Italian economy minister Giancarlo Giorgetti noted that U.S. stablecoin policy poses a greater threat to the European economy than tariffs. "The general focus these days is on the impact of trade tariffs. However, even more dangerous is the new U.S. policy on cryptocurrencies and in particular that on dollar-denominated stablecoins," said Giorgetti.
Risks to the Traditional Banking System
The minister pointed out that if the GENIUS Act is passed, savers would be able to invest in essentially risk-free assets without the need for a bank account. This creates risks for the traditional financial system, especially in countries with high inflation rates. "It is therefore easy to foresee their attractiveness for citizens of economies with unstable currencies, but its appeal for people of the euro zone should not be underestimated," he added.
Proposals to Address the Issue
To tackle this challenge, Giorgetti suggested that the European Union should fix its fragmented payments system. One solution could be a digital Euro, which would give Europeans easy access to payments without relying on foreign alternatives.
In light of the Italian economy minister's statements, the issue of stablecoins and their potential impact on Europe's financial systems remains a topic of importance that requires serious consideration from European regulators.
