Bank of Italy chief says banks anchor digital money

Bank of Italy governor Fabio Panetta said commercial bank money and central bank money will anchor the future digital monetary system.

Panetta said stablecoins can only play a complementary role because their stability depends on fiat currency pegs.

He made the remarks while addressing the executive committee of Italy’s banking association.

Panetta said digitalisation of money is a long-term structural trend led by banks and public institutions.

He argued that stablecoins lack the independence needed to function as a core monetary anchor.

Panetta said payments have become a strategic battleground for banks amid rapid technological change.

He added that political decisions now play a growing role in shaping trade, investment, and interest rates.

Panetta said technological power is increasingly driving shifts in the global economic balance.

He warned that digital finance is evolving in a more fragmented and less cooperative geopolitical environment.

The comments align with the Bank of Italy’s cautious stance on privately issued digital money.

Officials have previously warned that multi-issuance stablecoins could pose risks to EU financial stability.