Finance
ECB must have active role in payments' evolution to protect public trust in money
Published by Global Banking and Finance Review
Posted on October 30, 2025
Global Banking and Finance Review
Company
Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
Published by Global Banking and Finance Review
Posted on October 30, 2025
MILAN (Reuters) -Central banks must remain on top of developments in the finance and payments industries and play an active role in order to protect the monetary systems that underpin all modern economies, a top European Central Bank said.
In a speech delivered in Florence where the ECB's governing council on Wednesday started its two-day monthly policy meeting, Bank of Italy Governor Fabio Panetta said the latest innovation in currencies may jeopardise public trust in money.
KEY QUOTES
"The digital revolution is challenging the very concept of money," Panetta said.
"Some digital innovations risk being a step backward: the proliferation of private pseudo-digital currencies, beyond the reach of supervision, can generate instability, transfer seigniorage to a few actors, and facilitate illicit activities."
WHY IT MATTERS
In a recent report titled 'The Future of Money', the Group of 30, a not-for-profit international think tank comprising senior economics and finance experts, warned that without robust regulation, stablecoins could pose significant risks to the financial system.
Stablecoins, whose value is pegged to an asset such as a fiat currency, could lead to a fragmented monetary landscape, where multiple private currencies compete with sovereign money, and undermine the two-tiered monetary system (central bank money and commercial bank money), threatening trust and stability.
WHAT'S NEXT
The ECB is working on a digital euro - a digital version of central bank money - which it could launch in 2029, despite legislative delays in Brussels which are hampering preparatory work.
The digital euro aims to bolster Europe's monetary sovereignty by reducing fragmentation and reliance on non-European payment providers such as Visa and Mastercard.
BY THE NUMBERS
Stablecoins represent nearly $300 billion – about 7.5% of the crypto market – with a 75% year-over-year growth, the Bank of Italy said in September. Tether's USDT accounts for 56% of the market, followed by Circle's USDC with 25%. Stablecoins that aim to maintain parity with the U.S. dollar make up 98% of the global market.
(Reporting by Valentina ZaEditing by Keith Weir)