Latest news with #FabioPanetta
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:
Yahoo
3 days ago
- Business
- Yahoo
ECB's Panetta warns crypto losses can harm confidence in banks
By Valentina Za ROME (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 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 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. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
CNA
3 days ago
- Business
- CNA
ECB's Panetta warns crypto losses can harm confidence in banks
ROME :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 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 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.
Zawya
3 days ago
- Business
- Zawya
ECB's Panetta warns crypto losses can harm confidence in banks
ROME - 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 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 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. (Reporting by Valentina Za, editing by Gavin Jones)
Reuters
3 days ago
- Business
- Reuters
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 ( 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 ( 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.
