Italy's finance minister sees US Stable Coins as a greater threat than trading tariffs
The Italian Economic and Finance Minister warned that StableCoin policy in the United States was more worrying than the recently imposed trade tariffs of President Donald Trump, since these value-stable cryptocurrencies could undermine the predominance of the euro in cross-border payments.
At an event in Milan, Giancarlo Giortti said that while the trade tariffs master the headlines, the new US policy in relation to dollar-supported stable coins is an “even more dangerous” threat to European financial stability, according to one Message from Reuters.
US stabiloins enable users to invest in a widely accepted method for cross-border payments without opening a US bank account, Giorgetti explained. He warned that the growing attractiveness of US stable coins for Europeans should not be underestimated.
Giorschetti asked the legislators of the European Union (EU) to take further steps to strengthen the position of the euro as an international currency. He added that the digital euro, which is currently being developed by the European Central Bank (ECB), will be of crucial importance in order to minimize the need for Europeans to use foreign solutions.
USA work on stablecoin regulation
The regulation of stablecoins in the United States is still inconsistent. Instead of a uniform framework, several authorities apply existing laws to regulate stable coins. However, US politics is already working on the implementation of changes, with several stable coin laws on the way.
On April 2, the Committee on Financial Services from the US House of Representatives passed the StableCoin Transparency and Accountability for A Better Ledger Economy (Stable) Act. The draft law is now presented to the House of Representatives for coordination.
The draft law was introduced on February 6 by the committee chairman French Hill and the chairman of the subcommittee for digital assets, Bryan Steil. He would make sure that the issuers of stablecoins provide information about their shops, including the question of how their tokens are secured.
In addition, the guiding and establishment National Innovation for Us StableCoins (Genius) acts new rules that require the issuers to maintain 1: 1 secured reserves, comply with the laws to combat money laundering (AML), protect consumers and strengthen the dominance of the dollars in the global economy.
However, the genius law still has to be approved by both chambers of the congress and requires the president of the president before it can come into force.
ECB is increasingly promoting digital euros
In addition to Giortetti, ECB directorate Piero Cipollone recently asked European politics to strengthen their efforts to combat the dominance of dollar stable in Europe. On April 8, Cipollone wrote a article in which he expressed his concern about the growing popularity of US stable coins.
The ECB official proposed to introduce a digital central bank currency to combat this threat to the euro. This would help to preserve the currency sovereignty of the euro zone.
