Fabio Panetta, a former clerk of the European Central Bank (EBC), Fabio Panetta, advertised a digital euro as a key tool for controlling the risk of increasing the reception of cryptocurrencies.
Italy Bank, May 30, released Annual report with the governor’s final comments on the state of the economy. Panetta said that the European Union must move forward as part of the Central Bank Digital Currency (CBDC) project to maintain financial stability and satisfy the demand for secure digital payments.
“We would be underestimated to think that cryptocurrency evolution can only be controlled by rules and restrictions,” said Panetta, warning that the regulation of cryptocurrencies itself cannot solve the system risk posed by Crypto and that the digital euro will be the key to their solution.
Confined influence of Mikic on Stablecouins EU
Panetta also dealt with the influence of EU cryptocurrency regulatory framework, markets in the regulation of cryptocurrencies (MICI), which entered full strength at the end of 2024.
“Since Micar came into force, only some of the EMT [electronic money token] Stablecouins have been released in the EU and their circulation is so far constrained, “said the governor.
He also said that Mika did not fuel any significant development of Stablecoin in Italy:
“In Italy, there was no interest in the issue of cryptocurrencies by supervised intermediaries and other operators, while growing pressure on care and trade services was observed.”
He added that Mika encouraged companies to report if they plan to launch cryptocurrency services or intend to apply for permission.
Risk resulting from foreign platforms
Panetta, offering the protection of European investors, Mika did not fully secure the saving against the risk associated with “heterogeneity of regulatory approaches”.
“EU citizens may be exposed to failures of platforms or issuers based on other jurisdictions that do not have adequate control or necessary transparency and operational security,” he said.
He called for stronger international cooperation and called the EU to conduct global regulatory standards.
The digital euro is ultimately the right tool
Panetta said that only a digital euro, supported by a central bank, can offer the necessary trust and functionality in the changing payment landscape:
“You need an answer that corresponds to the ongoing technological transformation, which is able to satisfy the demand for secure, effective and available digital payment instruments, while maintaining the role of a central bank money,” he said. “The digital euro project results exactly from this need.”
Panetta’s comments are reflected in the program promoted by the member of the board of ECB Piero Cipollone, who was in favor of the introduction of a digital euro, citing the growing popularity of American dollars stalls, which currently constitute 97% of the entire Stablecoin market.
Related: Why tether refuses to follow Mika
Earlier, a member of the ECB Executive Council, Panetta resigned in October 2023, and then his position was filled with Cipollone.
The Panetta report took place a few weeks after imprisonment, the issuer of the world’s largest Stablecoin, USDT (USDT), defended the decision to omit Mika registration on USDT in early May.
“Miki’s license is very risky when it comes to Stablecoins and I think it is even more risky for a tiny, medium banking in Europe,” said the general director of Tether Paolo Ardoino.
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