Crypto: Bank Of Italy Chief Says Banks, Not Stablecoins, Anchor Digital Money
The Bank of Italy's Fabio Panetta said stablecoins can only play a complementary role in the monetary system, arguing that their stability depends on fiat currency pegs.
Commercial bank money is likely to become fully digital in the future, alongside central bank money, according to Fabio Panetta, the governor of Italy’s central bank, Banca d’Italia.
Panetta made the remarks on Wednesday while addressing the executive committee of Italy’s banking association. According to a report by Reuters, Panetta said both digital commercial bank money and central bank money would continue to anchor the monetary system, while stablecoins would only play a complementary role.
He added that the stability of stablecoins ultimately depends on their peg to traditional currencies, limiting their ability to function independently in the financial system. Panetta's comments came during a broader discussion on payments, financial infrastructure and geopolitical uncertainty.
The remarks reflect how European policymakers have described the digitalization of money as a long-term structural trend led by banks and central institutions, rather than privately issued crypto assets.
In the same speech, Panetta said payments have become a strategic area for banks, describing them as a core competitive battleground as technology and politics reshape the global economy.
According to the Italian wire service ANSA, Panetta said traditional economic variables like investment, trade and interest rates are now increasingly influenced by political decisions rather than purely market forces.
The central banker also said the center of gravity of the global economy is being driven largely by technological power. This tech transformation, he said, is occurring in a less cooperative global environment than past industrial revolutions.
Panetta framed digital finance as a pressure point for banks operating in an increasingly fragmented geopolitical landscape.
Related: Bank of Italy models Ethereum risks if ETH value collapsed
Source: CoinTelegraph
