ECB’s Panetta Predicts Full Tokenization of Commercial Bank Money
European Central Bank policymaker Fabio Panetta has declared that commercial bank money is "bound to become fully tokenized." Speaking to the Italian banking association, Panetta emphasized the complementary role of stablecoins, which remain tethered to traditional currencies. The ECB's digital euro project aims to replicate the accessibility and privacy of physical cash, targeting a potential 2029 launch.
Panetta envisions a future where private bank tokens and central bank digital currencies coexist, ensuring stability as society shifts away from physical cash. This sentiment aligns with global trends, as evidenced by JP Morgan and BlackRock's blockchain integration efforts showcased at the London Digital Assets Forum.
The UK's new crypto reporting rules, effective January 2026, and the ECB's digital euro preparation phase—concluding in October 2025—signal accelerating institutional adoption. A pilot could commence by mid-2027 if European legislators approve necessary legislation this year.
