Digital euro key to control crypto, ex-ECB official says
Fabio Panetta, former ECB official and Governor of the Bank of Italy, emphasized the importance of the digital euro in managing risks associated with cryptocurrency adoption. The Bank of Italy's annual report highlighted the need for the EU to advance its central bank digital currency (CBDC) project to ensure financial stability and secure digital payments. Panetta criticized the Markets in Crypto-Assets Regulation (MiCA) for its limited impact on stablecoin issuance in the EU and noted a lack of interest in crypto-assets in Italy. He warned that MiCA does not fully protect EU citizens from risks posed by foreign platforms with inadequate regulations. Panetta called for stronger international cooperation and global regulatory standards. He asserted that only a digital euro could provide the necessary trust and functionality in the evolving payment landscape, addressing the demand for secure and efficient digital payment instruments while maintaining central bank money's role.
