Italy sounds the alarm! The MiCA law is not enough to address the systemic risks associated with crypto assets. For the governor of the Bank of Italy, Fabio Panetta, only a digital euro backed by the central bank can indeed secure the rapidly changing European financial landscape. More details in the following paragraphs!
The governor of the Bank of Italy, Panetta, considers MiCA insufficient to effectively address the risks associated with crypto assets.
He presents the digital euro as the only stable solution to the challenges of the European crypto system.
Ineffective MiCA: Italy advocates for stronger crypto regulation
MiCA standards were promulgated in June 2023 and came into effect in December 2024. In his annual report, Fabio Panetta believes that this crypto regulation does not promote the adoption of compliant stablecoins in Europe.
Since the entry into force of the MiCA law, only a few EMT stablecoins have actually been issued. In Italy in particular, the issuance of these digital assets has remained marginal (despite the push for crypto custody and trading services).
Even more concerning, crypto regulation via MiCA does not protect investors from risks associated with unregulated foreign platforms. In practice, EU citizens remain exposed to failures of issuers based outside the jurisdiction, as highlighted in Panetta's report calling for urgent global regulatory cooperation.
The digital euro: a strategic response to the challenges of the crypto financial system
In light of these limitations, the digital euro appears as a more structuring response. In this sense, Panetta advocates for an acceleration of the project. The goal: to meet the growing demand for safe and sovereign digital payments.
According to him, indeed, only a public digital currency can offer the trust and functionality expected in the crypto universe. The explosion of dollar stablecoins confirms this urgency.
Tether's refusal to adhere to MiCA, deemed 'dangerous' for the European banking sector by its CEO, only adds to the tensions. The European Union plays an essential card here to:
its monetary sovereignty;
its economic stability.
As crypto continues to challenge traditional monetary balances, the digital euro emerges as a key resilience tool. Europe must now move from intentions to action!