Eurozone's Digital Push: Stablecoins vs. The Digital Euro

U.S. policy on stablecoins presents an appealing payment method for Europeans, raising more concerns than trade tariffs, Italy's economy minister warns. The EU must enhance the euro's global currency status, as stablecoins gain traction. The ECB's digital euro aims to bolster European payment sovereignty.

Italy's economy minister has voiced concerns over the U.S. policy on stablecoins, which has emerged as a preferable payment option for European citizens over trade tariffs. At an asset management event in Milan, Giancarlo Giorgetti urged EU authorities to reinforce the euro's standing as an international currency.

Stablecoins, cryptocurrencies linked to the U.S. dollar, have expanded significantly and are now a cornerstone of the sprawling crypto trading sector. They enable seamless transactions across various cryptocurrencies or conversion into traditional money, highlighting a shift in international financial interactions.

Giorgetti emphasized the potential appeal of stablecoins for Europeans, cautioning against underestimating its impact. Amid concerns of eroding sovereignty in payments, the ECB is actively developing a digital euro to curtail reliance on foreign solutions. This initiative aims to secure European citizens' payment options without compromising on financial stability.

(With inputs from agencies.)