Fabio Panetta, the Governor of the Bank of Italy, has emphasised that a digital euro is more effective than regulation alone. It can better address the growing risks associated with cryptocurrencies.

In his annual economic remarks, Panetta said the EU must advance the CBDC project to protect financial stability and meet growing demand for secure digital payments.

Panetta noted that the Markets in Crypto-Assets Regulation (MiCA), which came into full force in late 2024, has had minimal influence on stablecoin adoption in Europe.

Only a small number of electronic money tokens (EMTs) have been issued, with limited circulation and little interest from supervised intermediaries in Italy. Although MiCA encourages transparency, it has not stimulated significant crypto development in the region.

The governor also warned that European citizens remain exposed to risks due to inconsistent regulatory standards worldwide.

He urged stronger international cooperation, saying only a central bank-backed digital euro can ensure trust, efficiency, and security in digital payments.

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