Digitalization of Commercial Bank Money and Its Future Role in the Monetary System

Commercial bank money is anticipated to become fully digital alongside central bank money in the future, as stated by Fabio Panetta, the governor of Italy’s central bank, Banca d’Italia. According to Cointelegraph, Panetta shared these insights on Wednesday during a speech to the executive committee of Italy’s banking association. He emphasized that both digital commercial bank money and central bank money will continue to anchor the monetary system, while stablecoins will serve only a complementary role. Panetta noted that the stability of stablecoins is ultimately reliant on their peg to traditional currencies, which restricts their ability to operate independently within the financial system. His remarks were part of a broader discussion on payments, financial infrastructure, and geopolitical uncertainty. European policymakers have consistently described the digitalization of money as a long-term structural trend driven by banks and central institutions, rather than privately issued crypto assets. In his speech, Panetta highlighted the strategic importance of payments for banks, identifying them as a core competitive battleground as technology and politics reshape the global economy. According to the Italian wire service ANSA, Panetta pointed out that traditional economic variables like investment, trade, and interest rates are increasingly influenced by political decisions rather than purely market forces. He also mentioned that the global economy's center of gravity is being significantly influenced by technological advancements. This transformation is occurring in a less cooperative global environment compared to previous industrial revolutions. Panetta framed digital finance as a critical pressure point for banks operating in an increasingly fragmented geopolitical landscape. Panetta’s comments reflect the central bank’s cautious approach to stablecoins and privately issued digital money. On Sept. 19, 2025, Bank of Italy Vice Director Chiara Scotti expressed concerns about multi-issuance stablecoins, which are tokens issued across multiple jurisdictions under a single brand. She warned that these could pose significant legal, operational, and financial stability risks to the European Union. Scotti advocated for restricting such stablecoins to jurisdictions with equivalent regulatory standards and subjecting them to strict reserve and redemption mandates. She raised concerns that cross-border issuance could undermine EU oversight frameworks. Despite these concerns, Scotti acknowledged that stablecoins have the potential to lower transaction costs and enhance payment efficiency.