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Crypto Insight
2 days ago
- Business
- Crypto Insight
Digital euro, not MiCA, key to managing crypto risks: Bank of Italy chief
Former European Central Bank (ECB) official and Governor of the Bank of Italy, Fabio Panetta, touted the digital euro as a key tool for controlling the risks of increasing cryptocurrency adoption. The Bank of Italy, on May 30, released an annual report with the governor's concluding remarks on the state of the economy. Panetta said the European Union must move forward with the central bank digital currency (CBDC) project to maintain financial stability and meet demand for secure digital payments. 'We would be remiss to think that the evolution of crypto-assets can be controlled only through rules and restrictions,' Panetta said, warning that crypto regulation alone cannot address the systemic risks posed by crypto, and that the digital euro would be key to addressing them. MiCA's limited impact on EU stablecoins Panetta also addressed the impact of the EU's crypto regulatory framework, the Markets in Crypto-Assets Regulation (MiCA), which entered into full force in late 2024. 'Since MiCAR came into force, only some EMT [electronic money token] stablecoins have been issued in the EU and their circulation is limited so far,' the governor stated. He also said MiCA has not fueled any significant stablecoin developments in Italy: 'In Italy, there has so far been little interest in the issuance of crypto-assets by supervised intermediaries and other operators, while a growing focus on custodial and trading services has been observed.' MiCA has encouraged businesses to report if they plan to launch crypto asset services or intend to apply for authorization to do so, he added. Risks stemming from foreign platforms While offering some protection to European investors, MiCA has not fully safeguarded savers from the risks associated with 'heterogeneity in regulatory approaches' globally, Panetta argued. 'EU citizens might be exposed to failures of platforms or issuers based in other jurisdictions that lack adequate controls or the necessary transparency and operational safeguards,' he said. He called for stronger international cooperation and urged the EU to lead on establishing global regulatory standards. Digital euro is ultimately the right tool Panetta said that only a digital euro, backed by the central bank, could offer the necessary trust and functionality in a changing payment landscape: 'What is needed is a response that matches the ongoing technological transformation, one capable of meeting the demand for secure, efficient, and accessible digital payment instruments, all while preserving the role of central bank money,' he said. 'The digital euro project stems precisely from this need.' Panetta's remarks echo the agenda promoted by ECB Executive Board member Piero Cipollone, who has advocated for the launch of a digital euro, citing the growing popularity of US dollar stablecoins, which now make up 97% of the entire stablecoin market. Previously a member of the ECB's Executive Board, Panetta resigned in October 2023, with his position subsequently filled by Cipollone. Panetta's report came weeks after Tether, the issuer of the world's largest US dollar-pegged stablecoin, USDt, defended its decision to skip MiCA registration for USDT in early May. 'MiCA license is very dangerous when it comes to stablecoins, and I believe that is even more dangerous for the small, medium banking system in Europe,' Tether CEO Paolo Ardoino said at the time. Source:
Reuters
3 days ago
- Business
- Reuters
Italy Q1 GDP confirmed at 0.3% q/q but y/y rate revised up
ROME, May 30 (Reuters) - Italy's economy grew 0.3% in the first quarter from the previous three months due mainly to firm investments, national statistics bureau ISTAT said on Friday, confirming a previous printout. On a year-on-year basis, first quarter gross domestic product in the euro zone's third largest economy was up 0.7%, ISTAT said, revising up an estimate of 0.6% made on April 30. The breakdown of GDP components showed a rise in investments that drove domestic demand, while trade flows also made a marginal positive contribution to the quarter-on-quarter growth. Industry and agriculture expanded, while services declined slightly, ISTAT said. The statistics institute revised up to 0.5% from 0.4% so-called "acquired growth," at the end of the first quarter. This indicates what the full-year 2025 growth rate would be if there were to be no quarterly growth over the rest of the year. The Italian government halved its economic growth estimate for this year to 0.6% last month amid mounting uncertainty due to U.S. trade tariff policy. The European Commission cut its forecast for Italian 2025 growth to 0.7% from 1% last week. The Bank of Italy has forecast a growth rate of just 0.5%, while the International Monetary Fund sees 0.4%. Italy posted growth of 0.7% in each of the last two years. The fourth quarter of last year was confirmed to have posted a 0.2% GDP rise quarter-on-quarter, while the year-on-year rate was revised up to 0.6% from a previously reported 0.5%.
Bloomberg
3 days ago
- Business
- Bloomberg
ECB's Panetta Suggests Inflation Is Almost Defeated in Euro Zone
European Central Bank Governing Council member Fabio Panetta signaled that inflation is nearly fully tamed, while cautioning that further interest-rate cuts require finely balanced judgments. Speaking on the day that his country and two other major euro-zone economies release consumer-price data, the Bank of Italy governor hailed policymakers' progress but warned that their decisions from now on about whether to keep reducing borrowing costs won't get any easier.
Reuters
3 days ago
- Business
- Reuters
ECB's Panetta: reduced room for more rate cuts but must be flexible
ROME, May 30 (Reuters) - The European Central Bank has reduced room for further rate cuts but should maintain a pragmatic, flexible approach and make future decisions on a case-by-case basis, governing council member Fabio Panetta said on Friday. ECB policymakers are scheduled to meet on June 5, with financial markets expecting it to lower its key deposit rate to 2% from 2.25%. That would mark the bank's eighth cut in an easing cycle that which began in June last year and has seen the deposit rate come down from 4% to the current 2.25%, reflecting diminishing price pressures and concerns about weak economic growth. "The room for further rate cuts has naturally diminished," Panetta, the governor of the Bank of Italy, said in a keynote speech in Rome. "However, the economic outlook remains weak, and trade tensions could lead to a deterioration," he added. "It will be essential to maintain a pragmatic and flexible approach, considering liquidity conditions and the signals coming from financial and credit markets." Presenting the Bank of Italy's annual report, Panetta said the outcome of trade negotiations between the euro zone and the United States remained uncertain but the tensions were in any case bound to have a "significant impact" on the economy.
Yahoo
16-05-2025
- Politics
- Yahoo
Descendants of Italy's last king should not have crown jewels, court rules
A court in Italy has rejected a request made by the descendants of the country's last king to reclaim the crown jewels, with the judge ordering that the national treasures remain the property of the state. In February 2022, the descendants of Italy's last monarch sued the Italian state to reclaim the jewels, which for almost 78 years have been stashed in a treasure chest in a safety deposit box at the Bank of Italy – the country's central bank – amid a long-running saga over their ownership. The legal action came after the offspring of King Umberto II of Savoy failed to reach an agreement with the bank to return the jewels, which comprise more than 6,000 diamonds and 2,000 pearls mounted on brooches, necklaces and tiaras worn by various princesses and queens during the monarchy's 85-year existence and valued at €300m (£253m). The Rome civil court threw out the former Savoy family's bid on Thursday to have their ownership rights recognised, describing the claim as 'manifestly unfounded'. Olina Capolino, a lawyer for the Bank of Italy, welcomed the ruling. 'As a citizen, I now hope the state will soon put these historic jewels on display in a museum,' she said. The Bank of Italy took delivery of the jewels on 5 June 1946, three days after Italians voted to abolish the monarchy and nine days before Umberto II, who ruled for just 34 days, was banished into exile along with his male heirs. Umberto II had asked Falcone Lucifero, the then minister of the royal house, to bring the jewels to Luigi Einaudi, then governor of the Bank of Italy, who later became president, for safekeeping. The jewels are said to have been the only part of the royal estate that were not confiscated by the Italian state after the monarchy was scrapped, a fact the Savoia family hoped would allow them to win back possession. After the verdict, Sergio Orlandi, lawyer for the royal descendants, announced that his clients would appeal to the European court of human rights. In their appeal, the heirs of the former royal family will also demand that the Italian state reimburse them the value of all properties once owned by the last king of Italy.
