Italian Central Bank Governor Highlights Limited Role of Stablecoins

Italian Central Bank Governor Fabio Panetta emphasized that commercial bank money and central bank money will remain the foundation of the monetary system, with stablecoins serving only a supplementary role. According to PANews, Panetta highlighted that the stability of stablecoins is ultimately dependent on their peg to fiat currencies, which restricts their ability to operate independently within the financial system. He noted that payments have become a core strategic competitive area for banks, especially as the global economic focus shifts towards technological power and geopolitical environments become more fragmented, putting pressure on banks through digital finance. The Italian central bank maintains a cautious stance on stablecoins. The bank's deputy governor previously warned that 'multi-issuer stablecoins' issued across multiple jurisdictions could pose legal, operational, and financial stability risks to the EU. Therefore, they should be confined to areas with equivalent regulatory standards and subjected to strict reserve requirements.