Fabio Panetta, Governor of the Bank of Italy, emphasized that stablecoins will only play a supplementary role in the monetary system, with commercial and central bank money remaining foundational. Panetta highlighted that stablecoins' stability is reliant on their fiat currency peg, limiting their independent operation within the financial system.
The Bank of Italy maintains a cautious approach towards stablecoins, with concerns about "multi-issuer stablecoins" posing risks to the EU's financial stability. These stablecoins, issued across multiple jurisdictions, could face legal and operational challenges, necessitating strict regulatory standards and reserve requirements.
Italian Central Bank Governor: Stablecoins to Remain Supplementary in Monetary System
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