Governor of the Bank of Italy: Only a digital euro can effectively manage encryption risks, and MiCA has a limited impact on stablecoins.

According to Cointelegraph, Bank of Italy Governor Fabio Panetta noted in his annual report on May 30 that the European Union's Markets in Crypto Assets Act (MiCA) has had limited effect on driving the adoption of compliant stablecoins, according to Cointelegraph. Since the regulation came into full effect in late 2024, only a small number of electronic currency token (EMT) stablecoins have been issued across the EU, and Italian regulators have not observed significant interest from local companies in issuing cryptoassets.

Panetta believes that regulatory rules alone cannot resolve the systemic risks of the encryption asset, and that Central Bank Digital Currency (CBDC) is the key tool. He warned that foreign encryption platforms may lack transparency and risk control capabilities due to differences in regulatory standards, which could put EU citizens at risk of financial safety, and that a global regulatory framework needs to be established through international cooperation.

The digital euro project can meet the market demand for secure and efficient digital payment tools while maintaining the anchoring role of Central Bank currency. This viewpoint echoes the assertion of European Central Bank Executive Board member Piero Cipollone—currently, USD stablecoins occupy 97% of the market share, and Central Bank digital currency needs to be advanced.

One month before this statement was issued, Tether CEO Paolo Ardoino refused to apply for a MiCA license for USDT on the grounds of "threatening the European banking system."