Italy's Central Bank Governor Emphasizes Role of Banks Over Stablecoins in Digital Currency
Fabio Panetta, the head of the Bank of Italy, suggests that stablecoins are secondary to traditional bank currencies, as their reliability is tied to fiat currencies.
In a recent address, Fabio Panetta, the Governor of the Bank of Italy, stated that the future of monetary systems will depend heavily on digital commercial bank money and central bank money, with stablecoins only serving a supportive function. He articulated that the stability of stablecoins is intrinsically linked to their backing by traditional currencies, which restricts their potential to operate independently within the financial ecosystem.
Panetta’s insights emerged during a speech to Italy’s banking association’s executive committee. According to a Reuters report, he highlighted a transformation in payment strategies as geopolitical uncertainties shape global markets.
Furthermore, Panetta noted that conventional economic indicators today are increasingly swayed by political choices rather than solely by market dynamics. He characterized the digital finance realm as crucial for banks amid a fragmented geopolitical environment.
Payments and Digital Finance Presented as Strategic Priorities
In his remarks, Panetta classified payments as a key competitive area for banks, underlining the transformative impact that technology and political decisions are having on the economy. He also remarked on how digital finance is becoming pivotal in the banking sector, amid a backdrop of changing local and global dynamics.
A Cautious Approach to Stablecoins
Panetta’s commentary mirrors the central bank’s prudent view concerning stablecoins and privately issued digital currencies. Recently, on September 19, 2025, Vice Director Chiara Scotti expressed concerns over multi-issuance stablecoins—tokens generated across various jurisdictions under one branding—potentially posing significant legal and operational risks within the European Union.
She noted the necessity for stringent regulatory measures to ensure that such stablecoins align with established governance, thereby preventing cross-border issuances from undermining EU regulatory frameworks. While acknowledging some advantages, like reduced transaction costs, Scotti advocates for caution in integrating stablecoins into the broader financial landscape.
Digital Finance
The discussion showcases the complexities of balancing innovation with risk in the evolving world of digital finance.
