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Investing.com -- The U.S. policy on stablecoins, a type of cryptocurrency, is causing concern for European Union (EU) authorities, according to Italy’s economy minister, Giancarlo Giorgetti. Speaking at an asset management event in Milan on Tuesday, Giorgetti highlighted the potential impact of these digital currencies on cross-border transactions, particularly for European citizens.
Giorgetti’s concern stems from the fact that stablecoins, which are tied to the value of a specific asset or a pool of assets, could pose a threat to the status of the euro as an international reference currency. He argued that the new U.S. policy could give savers the chance to invest in risk-free assets and offer a widely accepted method of payment for international transactions, bypassing the need for a banking account with U.S. banks.
The economy minister suggested that the appeal of stablecoins is not limited to economies with unstable currencies. He warned that their attractiveness to eurozone citizens should not be underestimated. Giorgetti’s comments reflect a broader concern about the fragmentation of the EU’s payment industry.
In response to these developments, Giorgetti urged the EU to take further steps to reinforce the status of the euro. He indicated that the focus on the impact of trade tariffs might be overshadowing the potential risks posed by the U.S. policy on cryptocurrencies, particularly dollar-denominated stablecoins.
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