Bank of Italy Chief Urges EU to Launch Digital Euro

Fabio Panetta, head of the Bank of Italy and former European Central Bank executive, is pushing for the swift rollout of a digital euro, calling it Europe’s best answer to rising crypto risks and global regulatory fragmentation.

In remarks tied to the Bank of Italy’s latest annual report, Panetta warned that digital assets are evolving too fast to be contained by regulation alone. While praising efforts like MiCA, the EU’s crypto framework that took effect in late 2024, he said those rules have had little impact on stablecoin circulation or industry development in Italy.

Panetta argued that only a central bank–issued digital currency could offer the trust, resilience, and transparency needed to support digital payments in an age of globalized crypto finance. He also highlighted vulnerabilities created by offshore platforms, urging stronger international coordination to prevent European consumers from being exposed to failures abroad.

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The call comes amid growing concern in Europe over the dominance of U.S. dollar stablecoins. ECB board member Piero Cipollone has also flagged this trend as a strategic risk, echoing Panetta’s call for a public digital alternative. Meanwhile, stablecoin issuer Tether has rejected MiCA compliance, calling the framework a threat to smaller European banks.

Panetta stepped down from the ECB in late 2023 and now leads Italy’s response to the shifting global payments landscape.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.