ECB's Panetta warns crypto losses can harm confidence in banks

Concerns about Crypto-Assets: Fabio Panetta, Governor of the Bank of Italy, emphasized the need for banks to monitor reputational risks associated with crypto-asset services, warning that losses could undermine customer trust and confidence in the traditional banking system.

Regulatory Challenges and Digital Euro: Panetta highlighted the potential threats posed by stablecoins to traditional payment systems and argued for a regulatory response that aligns with technological advancements, noting that the European Central Bank is developing a digital euro to compete with private digital currencies.