The head of the Bank of Italy claims that the digital euro, not MiCA, is key to managing the risks of cryptocurrencies

Fabio Panetta, governor of the Bank of Italy, said that MiCA has had a limited impact on the adoption of compatible stablecoins in Europe, reinforcing the need for the digital euro.

The head of the Bank of Italy claims that the digital euro, not MiCA, is key to managing the risks of cryptocurrencies

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Former European Central Bank (ECB) official and Governor of the Bank of Italy, Fabio Panetta, has highlighted the digital euro as a key tool for controlling the risks associated with the growing adoption of crypto assets.

On May 30, the Bank of Italy published an annual report with the governor's conclusions on the state of the economy. Panetta said that the European Union must move forward with the central bank digital currency (CBDC) project to maintain financial stability and meet the demand for secure digital payments.

"It would be a mistake to think that the evolution of crypto assets can be controlled solely through rules and restrictions," said Panetta, warning that cryptocurrency regulation alone cannot address the systemic risks posed by crypto assets, and that the digital euro would be key to confronting them.