Italy’s Minister of Economy and Finance Giancarlo Giorgetti expressed concerns about the risks US dollar-backed stablecoins pose to the euro. At a recent event in Milan, he emphasized the need for the European Union to respond to the growing popularity of these digital assets in Europe.
Impact of US Stablecoins
Giorgetti stated that US stablecoins allow Europeans to make cross-border payments and investments in US dollars without needing to open American bank accounts. He highlighted the increasing appeal of these assets among European users and urged EU lawmakers to take decisive action to strengthen the euro’s role in international transactions.
Digital Euro as a Solution
The Minister emphasized the importance of the digital euro, which is currently under development by the ECB. Giorgetti noted that a digital euro will help reduce Europe’s reliance on foreign digital payment solutions and protect the eurozone’s monetary sovereignty.
ECB's Response
Piero Cipollone, a member of the ECB’s Executive Board, echoed Giorgetti’s concerns and called for urgent action to counter the growing popularity of US stablecoins in Europe. He suggested launching a central bank digital currency as a critical measure to safeguard the euro's future.
The statements from the Italian Minister and the ECB representative highlight the need for reinforcing the euro's position in the face of rising influence from US stablecoins. The creation of a digital euro is seen as an important step towards ensuring financial stability in Europe.
