A Governor Challenges MiCA and Rekindles the Digital Euro Debate
Italy sounds the alarm! The MiCA law is not enough to regulate the systemic risks related to crypto-assets. For the Governor of the Bank of Italy Fabio Panetta, only a digital euro backed by the Central Bank can indeed secure the rapidly evolving European financial landscape. More details in the following paragraphs!
In brief
- Bank of Italy Governor Panetta considers MiCA insufficient to effectively regulate risks related to crypto assets.
- He presents the digital euro as the only stable solution in the face of challenges in the European crypto system.
Ineffective MiCA: Italy advocates for strengthened crypto regulation
The MiCA standards were enacted in June 2023 and came into effect in December 2024. In his annual report, Fabio Panetta believes that this crypto regulation does not stimulate the adoption of compliant stablecoins in Europe.
Since the MiCA law came into force, only a few EMT stablecoins have actually been issued. In Italy in particular, the issuance of these digital assets has remained marginal (despite the growth of crypto custody and trading services).
Even more concerning, crypto regulation via MiCA does not protect investors from risks related to unregulated foreign platforms. Specifically, EU citizens remain exposed to failures of issuers based outside the jurisdiction, as highlighted by Panetta’s report calling for urgent global regulatory cooperation.
The digital euro: a strategic response to the challenges of the crypto financial system
In view of these limitations, the digital euro appears to be a more structuring response. In this sense, Panetta advocates for speeding up the project. The goal: to meet the growing demand for secure and sovereign digital payments.
According to him, only a public digital currency can offer the trust and functionality expected in the crypto world. The explosion of dollar stablecoins confirms this urgency.
Tether’s refusal to comply with MiCA, deemed “dangerous” for the European banking sector by its CEO, only adds to the tensions. The European Union is therefore playing a vital card to:
- its monetary sovereignty;
- its economic stability.
As crypto continues to challenge traditional monetary balances, the digital euro emerges as a key resilience tool. Europe must now move from intentions to action!
Maximize your Cointribune experience with our "Read to Earn" program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
My name is Ariela, and I am 31 years old. I have been working in the field of web writing for 7 years now. I only discovered trading and cryptocurrency a few years ago, but it is a universe that greatly interests me. The topics covered on the platform allow me to learn more. A singer in my spare time, I also cultivate a great passion for music and reading (and animals!)
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.