Panetta, from the ECB, warns that cryptocurrency losses may undermine trust in banks
Fabio Panetta, a member of the European Central Bank (ECB) and president of the Bank of Italy, issued a strong warning this Friday about the increasing risks that banks face when engaging with crypto assets.
In presenting the annual report of the Bank of Italy, Panetta emphasized that the growing convergence between the traditional financial system and the world of cryptocurrencies requires heightened attention, especially regarding reputation risks and customer trust.
According to him, there is a concrete danger that customers may confuse crypto assets with traditional banking products, which could lead to a loss of confidence in the credit system should losses occur.
An example of this trend is the Italian bank Intesa Sanpaolo, which in 2023 set up a trading desk dedicated to digital assets and, in January 2024, purchased 1 million euros in bitcoins, described as "a test" by CEO Carlo Messina.
Panetta's warning comes at a time when major European banks, such as the Spanish Santander, are also signaling intent to expand their operations in the sector, even studying the launch of stablecoins — cryptocurrencies pegged to fiat currencies — and offering access to crypto assets for retail customers.
Panetta drew attention to the risks that stablecoins pose to the traditional payment system, especially if promoted by large international technology platforms. He criticized the lack of adequate regulation, stating that under these conditions, their reliability as a means of payment is highly questionable.
Source: Reuters
