Fabio Panetta, Governor of the Bank of Italy and former European Central Bank official, emphasized that the digital euro, rather than the EU’s Markets in Crypto-Assets Regulation (MiCA), is the key to managing the systemic risks posed by the growing adoption of cryptocurrencies.
In the Bank of Italy’s annual report released on May 30, 2025, Panetta argued that relying solely on regulatory frameworks like MiCA is insufficient to control the evolving risks in the crypto space. He stated that only a central bank digital currency (CBDC) such as the digital euro can provide the necessary trust, resilience, and transparency to ensure financial stability and meet the demand for secure digital payments in a rapidly changing technological landscape.
Panetta highlighted that since MiCA came into full force in late 2024, its impact on the issuance and circulation of stablecoins in the EU has been limited, with only a few electronic money token (EMT) stablecoins issued and little significant development in Italy’s crypto market.
MiCA has encouraged businesses to report their crypto asset service plans but has not fully protected European investors from risks associated with platforms and issuers based outside the EU that may lack adequate controls or transparency. This situation underscores the need for stronger international cooperation and global regulatory standards, which Panetta advocates the EU should lead.
Furthermore, Panetta’s views align with those of ECB Executive Board member Piero Cipollone, who also calls for the launch of a digital euro to counterbalance the dominance of US dollar stablecoins and address strategic risks in the digital payments ecosystem.
So, the Bank of Italy chief sees the digital euro as the essential tool to manage crypto risks effectively, beyond what MiCA regulations can achieve, by providing a secure, efficient, and accessible digital payment instrument backed by central bank money.
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