Digital euro key to control crypto, ex-ECB official says
The post Digital euro key to control crypto, ex-ECB official says appeared on BitcoinEthereumNews.com. Former European Central Bank (ECB) official and Governor of the Bank of Italy, Fabio Panetta, touted the digital euro as a key tool for controlling the risks of increasing cryptocurrency adoption. The Bank of Italy, on May 30, released an annual report with the governor’s concluding remarks on the state of the economy. Panetta said the European Union must move forward with the central bank digital currency (CBDC) project to maintain financial stability and meet demand for secure digital payments. “We would be remiss to think that the evolution of crypto-assets can be controlled only through rules and restrictions,” Panetta said, warning that crypto regulation alone cannot address the systemic risks posed by crypto, and that the digital euro would be key to addressing them. MiCA’s limited impact on EU stablecoins Panetta also addressed the impact of the EU’s crypto regulatory framework, the Markets in Crypto-Assets Regulation (MiCA), which entered into full force in late 2024. “Since MiCAR came into force, only some EMT [electronic money token] stablecoins have been issued in the EU and their circulation is limited so far,” the governor stated. He also said MiCA has not fueled any significant stablecoin developments in Italy: “In Italy, there has so far been little interest in the issuance of crypto-assets by supervised intermediaries and other operators, while a growing focus on custodial and trading services has been observed.” MiCA has encouraged businesses to report if they plan to launch crypto asset services or intend to apply for authorization to do so, he added. Risks stemming from foreign platforms While offering some protection to European investors, MiCA has not fully safeguarded savers from the risks associated with “heterogeneity in regulatory approaches” globally, Panetta argued. “EU citizens might be exposed to failures of platforms or issuers based in other jurisdictions that lack adequate…
The post Digital euro key to control crypto, ex-ECB official says appeared on BitcoinEthereumNews.com.
Former European Central Bank (ECB) official and Governor of the Bank of Italy, Fabio Panetta, touted the digital euro as a key tool for controlling the risks of increasing cryptocurrency adoption. The Bank of Italy, on May 30, released an annual report with the governor’s concluding remarks on the state of the economy. Panetta said the European Union must move forward with the central bank digital currency (CBDC) project to maintain financial stability and meet demand for secure digital payments. “We would be remiss to think that the evolution of crypto-assets can be controlled only through rules and restrictions,” Panetta said, warning that crypto regulation alone cannot address the systemic risks posed by crypto, and that the digital euro would be key to addressing them. MiCA’s limited impact on EU stablecoins Panetta also addressed the impact of the EU’s crypto regulatory framework, the Markets in Crypto-Assets Regulation (MiCA), which entered into full force in late 2024. “Since MiCAR came into force, only some EMT [electronic money token] stablecoins have been issued in the EU and their circulation is limited so far,” the governor stated. He also said MiCA has not fueled any significant stablecoin developments in Italy: “In Italy, there has so far been little interest in the issuance of crypto-assets by supervised intermediaries and other operators, while a growing focus on custodial and trading services has been observed.” MiCA has encouraged businesses to report if they plan to launch crypto asset services or intend to apply for authorization to do so, he added. Risks stemming from foreign platforms While offering some protection to European investors, MiCA has not fully safeguarded savers from the risks associated with “heterogeneity in regulatory approaches” globally, Panetta argued. “EU citizens might be exposed to failures of platforms or issuers based in other jurisdictions that lack adequate…
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