TL;DR
- The Bank of Italy once again pushes the digital euro as an excuse to control cryptocurrencies and weaken individual financial freedom in Europe.
- MiCA has failed to slow down the free adoption of crypto assets, yet regulators insist on imposing a state-controlled, programmable, and heavily monitored digital currency.
- Instead of demanding fewer restrictions and fairer competition, European central banks are preparing a CBDC designed to centralize power and control.
Bank of Italy Governor Fabio Panetta has renewed his push to speed up the development of the digital euro as a tool to manage the so-called “risks of cryptocurrencies.” Once again, individual financial freedom faces growing state interference.
In his annual report, Panetta made it clear he believes regulation alone isn’t enough to curb the rise of digital assets. In his view, only a central bank-issued digital currency can guarantee financial stability.
A Centralized Digital Euro: A Financial Control Weapon
Panetta’s position isn’t new, but it remains deeply concerning. Under the pretext of “protecting citizens” and “maintaining system trust,” European central banks are pushing for a digital money system that’s controlled, programmable, and capable of tracking every transaction.
MiCA’s actual impact has been minimal. Since it came into effect in late 2024, hardly any new euro-backed stablecoins have entered the market, and adoption remains marginal. Panetta himself admitted that in Italy, regulated intermediaries show little interest in issuing crypto assets, though there’s growing demand for custody and trading services. This confirms that the real market interest lies in freely using these assets, not in issuing them under state supervision.
Regulations That Suffocate Competition
Even more concerning is the attempt to justify the digital euro as a response to supposed risks that, in reality, stem from international regulatory fragmentation. Panetta warned that European citizens are exposed to foreign platforms, but instead of calling for fewer barriers and more financial freedom, he proposes a centralized control infrastructure. This isn’t a solution — it’s a threat.
While dollar-referenced stablecoins dominate the market with 97% of total capitalization, European regulators prefer to bet on a CBDC designed to restrict options and decide who, when, and how people can use their money.
Tether’s refusal to submit to MiCA has already exposed the dangers of a framework that suffocates competition and protects traditional banking interests. Instead of acknowledging the value of a decentralized financial system, Panetta insists on replacing it with a model that concentrates power and narrows options for users and businesses. This strategy isn’t about protecting citizens — it’s about preserving the monopoly of state-controlled money
