Bank of Italy chief says banks, not stablecoins, anchor digital money

The Bank of Italy's Fabio Panetta said stablecoins can only play a complementary role in the monetary system, arguing that their stability depends on fiat currency pegs.

Commercial bank money is likely to become fully digital in the future, alongside central bank money, according to Fabio Panetta, the governor of Italy’s central bank, Banca d’Italia.

Panetta made the remarks on Wednesday while addressing the executive committee of Italy’s banking association. According to a report by Reuters, Panetta said both digital commercial bank money and central bank money would continue to anchor the monetary system, while stablecoins would only play a complementary role. 

He added that the stability of stablecoins ultimately depends on their peg to traditional currencies, limiting their ability to function independently in the financial system. Panetta's comments came during a broader discussion on payments, financial infrastructure and geopolitical uncertainty. 

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