Italian Minister Sounds Alarm: Dollar Stablecoins a Bigger Threat Than Tariffs!

Hang on to your digital wallets, folks! Italian Finance and Economy Minister Giancarlo Giorgetti is dropping a bombshell, claiming that dollar stablecoins are more menacing to Europe's economy than those pesky U.S. tariffs.

At a high-stakes asset management event in Milan, Giorgetti didn't hold back. He's seriously worried about the ripple effects of U.S. stablecoin policy on the European economy, way more than the tariff tussles.

"Everyone's buzzing about trade tariffs, but let me tell you, the real danger is lurking in the U.S. crypto policy, especially those dollar stablecoins," Giorgetti warned the crowd.

He's pointing fingers at the regulatory shake-up led by U.S. President Donald Trump, particularly the game-changing GENIUS Act. This act is setting the stage for new rules on stablecoins, and guess what? Trump's got a personal stake in this game with World Liberty Financial, his family's company, launching its own stablecoin.

Stablecoins Shake Up the Banking World

Get this: if the GENIUS Act passes, Giorgetti says savers worldwide could ditch banks and dive into these risk-free assets. That's a nightmare scenario for traditional banks, especially in countries battling high inflation.

"Don't underestimate how tempting these are for folks in unstable economies, and yeah, even Eurozone citizens might jump on the bandwagon," Giorgetti exclaimed.

The traditional banking system is sweating bullets here. Fewer deposits mean less cash to loan out and create credit, cranking up the systemic risk. And despite a small surge in Euro stablecoins, dollar ones are still king, holding a whopping 99% of the market!

So, what's Giorgetti's game plan? He's calling on the European Union to get its act together and fix its clunky payment systems. His ace in the hole? A digital Euro that could give Europeans a slick way to pay without leaning on foreign stablecoins.