Fabio Panetta , Governor of the Bank of Italy and member of the Governing Council of the European Central Bank (ECB) , has issued a clear warning about the growing involvement of banks in crypto-related services.
During the presentation of the institute's annual report, Panetta highlighted how the expansion of cryptocurrencies in the traditional financial system entails significant reputational risks for banks, with potential repercussions on customer trust.
According to Panetta, the increase in agreements between banks and digital asset providers is creating an increasingly solid bridge between two worlds that, until a few years ago, were clearly separated. This phenomenon, if not carefully monitored, could undermine the stability of the credit system.
Bank of Italy: Confusion between banking products and crypto?
One of the central points of Panetta's speech concerns the poor understanding by customers of the real nature of cryptocurrencies . Many users, the governor explained, tend to confuse these tools with traditional banking products, attributing to them a level of security and reliability that is not guaranteed.
This confusion can become particularly dangerous in the event of financial losses, as it could generate a crisis of confidence not only in cryptocurrencies, but also in the entire banking system. Panetta therefore invited financial institutions to carefully evaluate the reputational risks associated with offering crypto services , as also highlighted by an official of the European Central Bank.
The example of Intesa Sanpaolo and the interest of Santander
The involvement of banks in crypto-assets is no longer a future prospect, but an already existing reality. Intesa Sanpaolo, the main Italian banking group, carried out an operation last January that CEO Carlo Messina defined as “a test”, purchasing 1 million euros in bitcoin , the most well-known and capitalized cryptocurrency in the world.
Already in 2023, Intesa had established its own trading desk dedicated to digital assets, starting to manage spot operations with cryptocurrencies. This step represents a clear signal of the growing interest of banks in the crypto sector, despite the regulatory uncertainties and risks highlighted by Panetta.
Abroad, too, the landscape is rapidly evolving. According to Bloomberg, Spanish bank Santander is considering an expansion into digital assets.
Among the hypotheses in the initial phase there would be the creation of a stablecoin and the offering of access to cryptocurrencies for the retail customers of its digital bank, as indicated in a recent announcement by the Bank of Italy .
Stablecoins: A Threat to Traditional Payment Systems?
Another critical point highlighted by Panetta concerns stablecoins , cryptocurrencies designed to maintain a stable value anchored to fiat currencies or other assets. Although these digital coins are often presented as reliable instruments for payments, the governor of the Bank of Italy has expressed strong doubts about their suitability as a means of payment, especially in the absence of adequate regulation.
The risk, according to Panetta, is that large international technology platforms could promote the use of stablecoins, thus undermining the role of currencies issued by central banks. In this scenario, traditional payment systems could find themselves competing with private instruments, which are not always transparent or secure.
Regulate, Don't Ban: The Answer to Technological Transformation
Despite the critical issues highlighted, Panetta clarified that it would be illusory to think of stopping the spread of cryptocurrencies simply by imposing restrictions. On the contrary, he stressed the need for a response that is up to the technological transformation underway.
The digital euro project, promoted by the European Central Bank, fits into this perspective . This initiative was born from the need to offer a public and secure alternative to private digital instruments, while maintaining control of the monetary system in the hands of central authorities.
Panetta reiterated that the digital euro represents a concrete and strategic response to the growing popularity of cryptocurrencies and stablecoins. The aim is to ensure that central bank money continues to play a central role in the digital economy of the future.
The challenge for the European banking system
Panetta’s words come in a European context where cryptocurrency regulation is still in its infancy. While some banks are moving cautiously, others are already testing new products and services related to digital assets, trying to seize the opportunities offered by a rapidly expanding market.
However, the governor's message is clear: without careful oversight and consistent regulation, the risk is that the integration between traditional finance and crypto-assets could generate instability and a loss of public confidence, as highlighted in a recent warning by Panetta .
The future of the European banking system will depend on its ability to adapt to technological innovation without compromising the fundamental principles of financial security and consumer protection.
A balance between innovation and responsibility
Fabio Panetta’s speech is an important call for caution at a time when the financial world is undergoing profound changes. Cryptocurrencies and stablecoins offer new opportunities, but also complex challenges that require coordinated and far-sighted responses.
Banks, for their part, must be aware of the reputational and operational risks associated with entering the world of digital assets. Only through effective regulation and a shared strategy will it be possible to ensure that innovation does not undermine trust in the financial system.
The digital euro project could represent a turning point, offering a public and secure alternative to private digital currencies. But the road is still long, and success will depend on the ability of European institutions to lead the change with responsibility and vision, as underlined in a speech by Fabio Panetta.
