Bank of Italy’s head: digital euro will help save EU financial system

Digital euro and financial literacy are key EU answers to significant changes in the financial industry. This conclusion was shared by Bank of Italy’s head and ex-official European Central Bank Fabio Panthe.

The banker drew attention to the deepening of integration between cryptocurrencies and traditional finances and related risks.

Pantta noted that the introduction of steiblcoin platforms can create “new schemes of international payments”, capable of displacing traditional banknotes and cards. This will damage monetary sovereignty, protection of personal data and reduce the role of banks in lending.

He also emphasized the risks of extracurricular use of cryptocurrencies for money laundering, bypassing sanctions, and causing illegal circulation of goods.

According to Bank of Italy, European users have received a basic level of MICA’s implementation, but the difference in regulation at the international level still generates risks.

“This can be restrained through international cooperation – the goals in which Europe can take on a leading role. But it would be a mistake to think that the evolution of crypto assets can only be controlled by rules and restrictions, ”Pretta explained.

The banker considers the most appropriate answer to the digital euro, which will become a “safe, effective and accessible instrument of digital payments” without yawning on the role of central bank money.

Another aspect of adaptation to the new conditions, he called financial literacy, which should help people navigate digital products and evaluate their risks and prospects.

Recall that in March, the Analysts of the ECB found that eurozone citizens do not show interest in digital euro and do not see great value in CBDC.

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