Governor of the Bank of Italy: Digital Euro is Key to Effectively Managing Crypto Risks, MiCA's Impact on Stablecoins is Limited

According to Cointelegraph, Fabio Panetta, the Governor of the Bank of Italy, noted in his annual report on May 30 that the EU's Markets in Crypto-Assets Regulation (MiCA) has limited effectiveness in promoting the adoption of compliant stablecoins. Since the regulation came into full effect at the end of 2024, only a small number of electronic money token (EMT) stablecoins have been issued across the EU, and Italian regulators have not observed significant interest from local companies in issuing crypto assets.

Panetta believes that regulatory rules alone cannot mitigate the systemic risks of crypto assets, and central bank digital currencies (CBDCs) are the key tool. He warned that foreign crypto platforms might lack transparency and risk control capabilities due to differences in regulatory standards, posing a threat to the financial security of EU citizens, and emphasized the need for international cooperation to establish a global regulatory framework.

The digital euro project can meet the market's demand for safe and efficient digital payment tools while maintaining the anchoring role of central bank money. This view echoes the stance of European Central Bank Executive Board member Piero Cipollone, who advocates for the urgent advancement of central bank digital currencies, given that dollar stablecoins currently hold a 97% market share.

A month before this statement was released, Tether CEO Paolo Ardoino refused to apply for MiCA approval for USDT, citing a "threat to the European banking system" as the reason.