Italy's Bank Governor Fabio Panetta expressed concerns over the inadequacy of current regulatory measures in ensuring cryptocurrency stability in Europe, advocating for the implementation of a central bank digital currency.
The Need for Central Bank Digital Currency
Fabio Panetta stated in the Bank of Italy’s annual report that the stability of Europe’s cryptocurrency market depends on the implementation of a central bank digital currency (CBDC), while highlighting the shortcomings of existing MiCA regulations.
Limited Impact of MiCA
According to Panetta, the impact of MiCA regulations on the development of the crypto sphere has been minimal. He expressed the opinion that mere existence of rules would not lead to the creation of a trusted ecosystem of digital assets in Europe, allowing operators outside the region to remain beyond control.
Financial Risks and Innovations
Panetta also noted that banks may face reputational risks if they provide services in the field of cryptocurrencies without adequate safeguards. He urged European lawmakers to collaborate in forming aligned global rules for crypto assets.
Thus, Panetta emphasizes the necessity of actively implementing a central bank digital currency in Europe to ensure user protection and enhance trust in the financial system.
