The Markets in Crypto-Assets (Mica) Regulatory Framework was a landmark moment for the European digital asset space and was hailed as the most complete regulations globally. However, according to the governor of the Bank of Italy, it is not enough to protect consumers from the risks with Stablecoins and “crypto” volatility.
Governor Fabio Panetta trivialized influence Mica has had in the region since it came into effect Late last year. In his Notes For the bank’s annual report, he noted that only a few Stablecoin issuers have received the new license and their circulation is limited.
“In Italy, there has been some interest so far in the issuance of crypto resources of supervised intermediaries and other operators, while a growing focus on custody and trade services has been observed,” he said.
Circle, the company behind USDC, the second largest Stablecoin, was among earliest recipients of the new license. But its main rival, tether, has avoided the license, as CEO Paolo Ardoino marked as “very dangerous for stablecoins.” Tether’s refusal to comply with the mica rules could see USDT being delisted by European exchanges, and Some already have.
Although mica was fully effective in the EU, “heterogeneity in regulatory approach at international level remains a source of risk,” Panetta added. Platforms regulated in other jurisdictions, where regulations are not as strict, would still remain a threat to European investors in the world after Mica.
“These risks Can be included through international cooperation – a goal for which Europe can take the leadership. But we would be a referral to believe that the development of crypto resources can only be controlled by rules and restrictions. “
Panetta drives the digital euro
Beyond Mica warned Panetta that the increasing integration of digital assets in the inheritance financial system can damage the confidence in banks.
“The risks derived from this sector must be carefully monitored, especially the reputable risks linked to the provision of crypto resources of banks … There is a concern that crypto resources may not understand their nature and counteract them with traditional bank products, with potentially negative repair for confidence in the credit system.
While Europe has embraced digital assets and stablecoinsThe region has settled after developing regional solutions and relies strongly on American companies. This has touched on European leaders, and Panetta repeated these problems.
He believes that if American technology companies are running Digital asset paymentsDomestic payment methods can become crowded, “negatively affect monetary sovereignty, protection of personal data and credit mediation, which so far has always been integrated with and supplement to provide payment services.”
However, there is a solution that can compete with all digital asset options: a Digital euros. The governor emphasized that Central Bank digital currency (CBDC) would match the ongoing technical progress, while preserving the role of the central bank’s money.
Before taking over the Italian Central Bank, Panetta was a board member at the European Central Bank (ECB), which is behind the development of digital euros. In his four -year period on the ECB he was a harsh critic of digital assets, as he mentioned is “full of market errors and negative externals.”
Rand that works with banks to integrate StableCoins
Elsewhere, Global Fintech Giant Stripe is in discussions with its bank partners about Stablecoin integration, says co-founder John Collison.
Stripe Launched Stablecoin stands for its users in 100 countries a month ago, which allows them to send and receive USD-PEGGED STABLECOINS, “is similar to how a traditional Fiat bank account works.”
“This is not something the banks just brush away or treat like a fashion fly. Banks are very interested in how to integrate with Stablecoins in their product range as well,” he told Bloomberg.
Stablecoin -adoption has skyrocketed in recent years, and on Monday, their collective market fall surpassed $ 250 billion for the first time. Last year, over $ 27.6 trillion was moved in Stablecoins, which was more than visas (Nasdaq: v) and mastercard (Nasdaq: MA) combined. However, the majority of the transactions were limited to speculative exchanges.
This huge market attracts ordinary finance companies, and Collison says Stripe also intends to double its Stablecoin focus.
“Much of our future payment volume will be in Stablecoins. This is certainly a big part of our business on its way forward.”
Watch: CBDCs are more than just digital money
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