Governor of the Bank of Italy: Only digital euro can effectively manage cryptocurrency risks, MiCA has limited impact on stablecoins

ChainCatcher news, according to Cointelegraph, Fabio Panetta, the Governor of the Bank of Italy, pointed out in the annual report on May 30 that the EU's Markets in Crypto-Assets Regulation (MiCA) has had limited effects on promoting the adoption of compliant stablecoins. Since the regulation comes into full effect at the end of 2024, only a small number of electronic money tokens (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 may lack transparency and risk control capabilities due to differing regulatory standards, posing a threat to the safety of funds for EU citizens, and that a global regulatory framework needs to be established through international cooperation.

The digital euro project can meet the market's demand for secure and efficient digital payment tools while maintaining the anchoring role of central bank money. This view echoes the assertion of ECB Executive Board member Piero Cipollone—currently, dollar stablecoins hold a 97% market share, and the promotion of central bank digital currencies is urgent.

One month before this statement was released, Tether CEO Paolo Ardoino refused to apply for MiCA licensing for USDT, citing "threats to the European banking system."