ECB's Panetta warns crypto losses can harm confidence in banks
ROME, May 30 (Reuters) - European Central Bank policymaker and Bank of Italy Governor Fabio Panetta called on Friday for close monitoring of the reputational risks banks face in providing crypto-asset services, warning that losses could harm the trust of customers.
Presenting the Bank of Italy's annual report, Panetta warned about the growing links between the world of crypto-assets and the traditional financial system, pointing to the rising number of accords between banks and digital asset providers.
"Crypto-asset holders might not fully understand their nature and conflate them with traditional banking products, with potentially negative repercussions for confidence in the credit system should losses occur," Panetta said.
Italy's biggest bank Intesa Sanpaolo (ISP.MI), opens new tab in January carried out what CEO Carlo Messina described as "a test", by buying 1 million euros in bitcoins, the world's largest digital currency.
Intesa set up a proprietary trading desk for digital assets in 2023, and last year started handling spot trades with crypto-assets.
Spain's Santander (SAN.MC), opens new tab is weighing a digital asset expansion, including early-stage plans to offer a stablecoin as well as access to cryptocurrencies for retail customers of its digital bank, Bloomberg reported on Thursday.
Panetta said stablecoins, which are designed to maintain a stable value against underlying currencies or assets, posed a threat to traditional means of payments if large foreign-based technology platforms decided to promote their use.
"In the absence of adequate regulation, their suitability as a means of payment is doubtful, to say the least," he said.
The central banker warned, however, that it would be foolish to think that the spread of crypto-assets, including stablecoins, can be curbed simply by imposing restrictions.
"What is needed is a response that matches the ongoing technological transformation," he said, adding that "the digital euro project stems precisely from this need."
The European Central Bank is working to develop a digital currency to compete with private alternatives that risk undermining the role of central bank money.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
17 minutes ago
- Daily Mail
EXCLUSIVE A bright yellow minibus, a force 9 gale in the Baltic and a gang of heavies with Kalashnikovs: how MI6 extracted a KGB colonel and double agent from under the Russians' noses - with his wife, son and senile mother-in-law in tow
Even with decades of experience between them, the two middle-aged spies were on edge. They were about to attempt something that had never been done before in the history of MI6. Instead of smuggling out one Russian spy to a new life in Britain – the more usual scenario – they were going to extract an entire family.
Telegraph
21 minutes ago
- Telegraph
The Daily T: New search for evidence against Madeleine McCann prime suspect Christian Brueckner
The case captured the world's attention back in 2007 and has continued to pop up in headlines ever since. But the disappearance of Madeleine McCann remains a mystery. Now German authorities have launched a fresh search in southern Portugal for evidence of what happened to the British toddler. Police are in a race against time to charge the prime suspect, convicted paedophile Christian Brueckner, who is currently in prison in Germany on a separate conviction – but plans to disappear when he is released in September. Camilla and Gordon look back on one of the most widely reported missing-persons cases in British history, and get an update on the new search from crime editor Martin Evans.
The Sun
23 minutes ago
- The Sun
Coronation Street siblings look unrecognisable almost two decades on from ITV soap exit
CORONATION Street fans have been left stunned after spotting two former child stars looking totally unrecognisable. The twin sisters were last seen in Weatherfield 17 years ago - but do you recognise them? 5 5 Twin sisters, Emily and Amy Walton, shared the role of Bethany Platt for seven years from 2000 to 2007 on Coronation Street. The long-standing character first appeared on the cobbles back in 2000 and is the daughter of Sarah Platt (Tina O'Brien). They were involved in some major dramatic storylines from being kidnapped by her paternal grandmother Brenda Fearns (Julia Deakin), to taking an ecstasy pill that her uncle had stashed inside of her doll and ended up hospitalised. However, Bethany left the cobbles in 2007 when Sarah decided to move to Italy. Since then, the twins have moved away from the acting and showbiz world. They competed in the British Trampoline finals in 2016, with Amy securing a place in Great Britain's team the European Championships the following year. Emily shared a snap with her sister on Instagram back in January - and the pair look worlds away from their Coronation Street days. They both beamed at the camera as they holidayed in Thailand. She captioned the snap: "The last of Thailand," alongside a yellow heart emoji. Meanwhile, when Bethany Platt returned in 2015, Lucy Fallon took over the role. Inside Coronation Street star Lucy Fallon's £300 per night holiday at luxury getaway She has brought drama and awareness through major storylines, including being groomed by Nathan Curtis (Christopher Harper) and getting a stoma bag through botched surgery. The 29-year-old returned to Corrie in December 2023 after having previously left in 2019 to go on maternity leave after welcoming her first child, Sonny, in early 2023. The actress then revealed she was leaving again shortly after she announced she was pregnant with her second child, who she gave birth to in January with partner Ryan Ledson. Despite exiting twice, the door has always being left open for her to return - but Lucy has now hinted she's quit for good. Soap characters who've been recast Soap operas are staple viewing for many people, but even some of the most famous characters have been played by different actors. Here are some examples from over the years. Coronation Street Tracy Barlow: Kate Ford took on the role of Corrie legend Tracy Barlow in 2002. Before Kate, three other actresses had played Tracy - most notably Dawn Acton from 1988 to 1999. Nick Tilsley: Ben Price has been playing Gail's oldest child in 2009, but the former Footballers' Wives star is the third actor to take on the part. Sarah Platt: Although Tina O'Brien debuted as Sarah Platt in 1999, she is the third actress who has played the iconic role of Sarah Platt. David Platt: Completing the line-up of Gail's children, David was initially played by Thomas Ormson for a decade before Jack P. Shepherd took over. Daniel Osbourne: For almost a decade, the role of Ken Barlow's son Daniel has been portrayed by actor Rob Mallard. Before Rob joined, two other actors had previously played Daniel. Bethany Platt: Fans know Lucy Fallon as Bethany nowadays but before her, three other actresses had stepped into the character's shoes. Kirk Sutherland: Before Andy Whyment took on the role of Kirk, he played by an uncredited actor in his very first appearance. Todd Grimshaw: Gareth Pierce stepped into the role of Todd back in 2020, becoming the second performer to play this part. Summer Spellman: Harriet Bibby became the second actress to play Summer, taking over the role from Matilda Freeman in 2020. Ryan Connor: Ryan Prescott currently plays the long-running character, but Ben Thompson and Sol Heras had earlier portrayed the role. EastEnders Martin Fowler: Although Martin was the first baby born on-screen in EastEnders, he hasn't always been played by the same person. His current portrayer, James Bye, is the third actor to star as the character. Peter Beale: Seven actors have portrayed Ian Beale's elder son, with the current actor, Thomas Law, in his second stint as the character. Ben Mitchell: Ben has been played by a total of six actors - with Max Bowden bowing out of the role in March 2024. Bobby Beale: Before Clay Milner Russell, Ian's younger son had been played by four other actors. Freddie Slater: Bobby's best mate, Freddie Slater, had been previously played by twins Alex and Tom Kilby before Bobby Brazier took over in 2022. Chelsea Fox: Former Coronation Street actress Zaraah Abrahams took over the role of Chelsea in 2020. The character had been first played by Tiana Benjamin from 2006 to 2010. Lauren Branning: Jacqueline Jossa took on the role of Lauren in 2010, succeeding Madeline Duggan who'd played her from 2006 to 2010. Johnny Carter: Johnny has been played by three actors since debuting in 2013 - most recently, Charlie Suff has taken on the role. The soap star has signed up to talent agent Off Limits, which help TV stars and influencer clients land brand deals, which goes against ITV's strict rules for their cast. While Coronation Street does allow product placement on the show, like with the Co-op and Costa Coffee, the cast is generally restricted from doing their own brand deals. This has caused some tension, with actors expressing frustration at being able to promote products on the show but not off-screen. The Sun have reached out to Lucy's rep for comment. A slew of mid-salary stars is furious that ITV bosses have agreed to the money-spinning deal to have the high street giants' shopfronts and products on-screen on the expanded new set. But at the same time, cast members are banned from taking ad work promoting products away from the soap that could massively boost their earnings. ITV rules state that the stars are only allowed to take part in other shows like I'm A Celebrity and Dancing on Ice and do personal appearances like shop openings. It comes after Jack P Shepherd is set to be bombarded with big money deals after winning Celebrity Big Brother. But any plans to cash in by signing up to star in television adverts will be blocked by Coronation Street bosses. A TV insider said: "It used to be a lot more strict, but these days ITV soap stars are allowed certain partnerships that are permitted on social media. "The line is drawn at advertising more generally - and absolutely no TV adverts." 5 5 5
