Europe’s Real Threat Isn’t Trump — It’s Stablecoins

The Italian Minister of Economy and Finance, Giancarlo Giorgetti, expressed his concerns about the threat posed by American stablecoins, highlighting that they could represent a greater danger than Donald Trump’s tariffs. According to him, these dollar-backed cryptos risk disrupting the financial stability of Europe.

Stablecoins: a threat to European stability

While the dollar is currently in free fall, Giancarlo Giorgetti warns that American policies regarding stablecoins backed by it could threaten the euro’s dominance in cross-border payments. According to him, the growing appeal of these cryptos among Europeans could undermine the role of the euro.

While tariffs dominate the debates, he believes that the rise of stablecoins, which allows European users to make transactions without going through American banks, represents a major challenge for the European economy. Therefore, he calls for strengthening the role of the European single currency and the “digital euro” project currently being developed by the ECB.

Stablecoins and their rapid growth by 2028

At the same time, asset-backed stablecoins could see their value explode to reach 2 trillion dollars by 2028, according to a recent analysis. Currently estimated at 230 billion dollars, the stablecoin market is about to multiply by ten, driven by imminent legislation in the United States.

The “GENIUS Act“, currently being adopted, will establish a precise regulatory framework for these cryptos, thereby accelerating their global adoption. According to experts, this growth should lead to increased demand for US Treasury bonds, reinforcing the dollar’s position in the global economy.

Risks to the dominance of the dollar

Although the rise of stablecoins supports the domination of the dollar, it could also reduce the dominance of the euro. If stablecoins diversify into other currencies or baskets of currencies, this could also harm the hegemony of the dollar, much to the delight of Tether.

Stablecoins, which pose a challenge to the euro, risk strengthening the dollar globally. Faced with this rise, Europe must react, notably by continuing the development of the digital euro, set to launch by October 2025.