Italy’s Economy Minister, Giancarlo Giorgetti, sounding the alarm. You know the euro? Well, according to Giorgetti, it’s facing a sneaky threat, not from trade wars or tariffs, but from dollar-based stablecoins.
Tokens pegged to Uncle Sam’s greenback are apparently causing more headaches for the eurozone than a bad plate of spaghetti.
Utility
Speaking at an event in Milan, Giorgetti didn’t hold back, and he warned that the U.S. is getting its act together on stablecoin regulations while Europe is still fumbling around. And these dollar-pegged coins?
They’re becoming a go-to for cross-border payments, fast, reliable, and way too tempting for Europeans. It’s like offering gelato during a heatwave, hard to resist.
The U.S. Congress is cooking up two big bills, the STABLE Act and the GENIUS Act. These laws would require stablecoin issuers to back their coins with U.S. Treasury bonds.
Critics, like Chinese economist Zhang Ming, say this is just another way for America to tighten its grip on global finance. Giorgetti agrees, saying Europe needs to wake up before it’s too late.
Competition
Why are these stablecoins such a big deal? Simple. They let people save and spend without needing a U.S. bank account.
For Europeans, they’re a handy tool for international transactions, especially when local currencies wobble like a drunk at closing time.
Giorgetti fears that even eurozone citizens might start ditching the euro for these digital dollars if Europe doesn’t step up its game.
So what’s the EU doing about it? Enter the digital euro, a central bank digital currency, or CBDC designed to keep Europeans loyal, some would say chained to their homegrown currency.
The idea is to let people hold digital euro accounts directly with the European Central Bank.
Sounds great, right? Not everyone thinks so. European banks are worried this could drain their deposits and mess with their liquidity.
No time to playing around
But Giorgetti insists this is no time for half-measures. If Europe wants to stay in the game, it needs to offer a payment system that can rival dollar-backed stablecoins.
The digital euro will be essential, he said, emphasizing that Europe can’t afford to rely on foreign solutions for something as basic as payments.
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