Bank of Italy Governor Advocates for Digital Euro Amid Stablecoin Concerns
Fabio Panetta, Governor of the Bank of Italy, has declared the digital euro essential for ensuring stablecoin compliance, casting doubt on the efficacy of the EU’s Markets in Crypto-Assets Regulation (MiCA). In the bank’s annual report released May 30, 2025, Panetta argued that MiCA—lauded in 2024 as a milestone for crypto oversight—has failed to mitigate risks in stablecoin development.
"Rules alone won’t build trust," Panetta stated, emphasizing that a central bank digital currency is necessary to match the pace of technological change. The digital euro project, he noted, directly addresses this gap. Despite MiCA’s investor protections, the report warns of unregulated offshore crypto platforms exposing EU citizens to operational failures.
The commentary underscores growing institutional skepticism toward private stablecoins and reinforces Europe’s push for sovereign digital currency solutions. No specific cryptocurrencies or exchanges were cited in the remarks.