Italy’s Central Bank Governor Challenges MiCA, Advocates for Digital Euro as Crypto Safeguard

Bank of Italy Governor Fabio Panetta has declared the EU’s Markets in Crypto-Assets (MiCA) regulation insufficient to address systemic risks in the digital asset space. The framework, enacted in June 2023, has failed to spur meaningful adoption of compliant stablecoins across Europe. Only a handful of electronic money token (EMT) issuances have materialized since MiCA’s implementation, with Italy seeing particularly marginal activity despite growing crypto custody and trading services.

Panetta’s annual report sounds the alarm on unregulated foreign platforms, noting EU investors remain exposed to offshore issuer failures. "The digital euro emerges as the only stable solution," the governor asserted, positioning the CBDC as a necessary anchor for Europe’s evolving financial landscape. This intervention reignites debates about centralized monetary instruments versus decentralized crypto assets.