Stablecoins: Eurogeddon?! 😱

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So, the Italian finance and economy minister, Giancarlo Giorgetti – a name that rolls off the tongue like a finely aged parmesan 🧀 – is sounding the alarm. Apparently, he’s not too thrilled about what the Yanks are up to with their dollar stablecoins. And get this, he reckons they’re a bigger threat to the European economy than tariffs! Tariffs! That’s like saying a rogue squirrel is more dangerous than a grizzly bear. 🐿️🐻

At some fancy asset management shindig in Milan, Giorgetti – there’s that name again – doubled down. He said U.S. stablecoin policy is giving European leaders the jitters more than, well, U.S. tariffs. You’d think they’d be used to our shenanigans by now. 😉

“The general focus these days is on the impact of trade tariffs. However, even more dangerous is the new U.S. policy on cryptocurrencies and in particular that on dollar-denominated stablecoins,” said Giorgetti. Because what could be more terrifying than digital money pegged to the dollar? 👻

Apparently, this Giorgetti fellow is talking about the regulatory changes being cooked up by none other than Donald Trump. Yes, the very same Trump who once tried to build a wall and is now dabbling in crypto. Talk about a plot twist! He’s particularly keen on stablecoins, probably because his family-linked company, World Liberty Financial, has launched its very own stablecoin. Because nothing says “trustworthy financial instrument” like a Trump-branded crypto. 💰

Stablecoins threaten the traditional banking system

If this GENIUS Act – and let’s face it, naming something the “GENIUS Act” is already a red flag 🚩 – becomes law, Giorgetti reckons savers worldwide could invest in practically risk-free assets without needing a bank account. Imagine! Bypassing the institutions that have been charging us fees for centuries! The cheek of it! For the traditional financial system, this is apparently a big no-no, especially in countries where inflation is running wild. But isn’t a little inflation good for you? Like a little bit of spice in your spaghetti? 🍝

“It is therefore easy to foresee their attractiveness for citizens of economies with unstable currencies, but its appeal for people of the euro zone should not be underestimated,” Giorgetti said. So, even us Euro-folk might be tempted by the allure of digital dollars? Sacre bleu! 🇫🇷

The old-school financial system relies on our deposits to hand out loans and create credit. Fewer deposits, more risk. Makes sense, I guess. And even though there’s been a slight uptick in euro-denominated stablecoins, dollar stablecoins still reign supreme. Apparently, they account for 99% of the stablecoin market cap. Talk about dominance! 🇺🇸

So, what’s the solution? According to Giorgetti, the EU needs to sort out its fragmented payments system. One idea is a digital Euro, giving Europeans easy access to payments without relying on those pesky foreign alternatives. A digital Euro, eh? Sounds like something out of a sci-fi movie. Beam me up, digital Euro! 🚀

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2025-04-16 15:38