Governor Throws Gauntlet at MiCA—Now the Digital Euro’s Back in Play

A high-ranking official just fired the first shot against Europe’s crypto regulation framework—and accidentally reignited the smoldering debate over a digital euro. Was this a power play or just another bureaucratic blunder?

MiCA’s supposed to be the rulebook for crypto in the EU. But when a governor publicly challenges it, everyone starts asking: Is the bloc’s regulatory mojo fading—or is this a backdoor push for CBDC dominance?

Meanwhile, bankers are sweating over their spreadsheets. A state-backed digital euro could undercut their fees—oh no, not the profit margins!—but let’s be real: they’ll probably just pass the costs to consumers anyway.

In brief

• Bank of Italy Governor Panetta considers MiCA insufficient to effectively regulate risks related to crypto assets.
• He presents the digital euro as the only stable solution in the face of challenges in the European crypto system.

Ineffective MiCA: Italy advocates for strengthened crypto regulation

The MiCA standards were enacted in June 2023 and came into effect in December 2024. In his annual report, Fabio Panetta believes thatdoes not stimulate the adoption of compliant stablecoins in Europe.

Since the MiCA law came into force, only a few EMT stablecoins have actually been issued. In Italy in particular, the issuance of these digital assets has remained marginal (despite the growth of crypto custody and trading services).

Even more concerning, crypto regulation via MiCA does not protect investors from risks related to unregulated foreign platforms. Specifically, EU citizens remain exposed to failures of issuers based outside the jurisdiction, as highlighted by Panetta’s report calling for urgent global regulatory cooperation.

The digital euro: a strategic response to the challenges of the crypto financial system

In view of these limitations,appears to be a more structuring response. In this sense, Panetta advocates for speeding up the project. The goal: to meet the growing demand for secure and sovereign digital payments.

According to him, only a public digital currency can offer the trust and functionality expected in the crypto world. Theconfirms this urgency.

Tether’s refusal to comply with MiCA, deemed “dangerous” for the European banking sector by its CEO, only adds to the tensions. The European Union is therefore playing a vital card 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!

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