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.
The remarks reflect how European policymakers have described the digitalization of money as a long-term structural trend led by banks and central institutions, rather than by privately issued crypto assets.
Payments and digital finance become strategic as geopolitics reshape markets
In the same speech, Panetta said payments have become a strategic area for banks, describing them as a core competitive battleground as technology and politics reshape the global economy.
According to the Italian wire service ANSA, Panetta said traditional economic variables like investment, trade and interest rates are now increasingly influenced by political decisions rather than purely market forces.
The central banker also said the center of gravity of the global economy is being driven largely by technological power. This tech transformation, he said, is occurring in a less cooperative global environment than past industrial revolutions.
Panetta framed digital finance as a pressure point for banks operating in an increasingly fragmented geopolitical landscape.
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Bank of Italy’s cautious stance on stablecoins
Panetta’s comments reflect the central bank’s cautious approach to stablecoins and privately issued digital money.
On Sept. 19, 2025, Bank of Italy Vice Director Chiara Scotti warned that so-called multi-issuance stablecoins, tokens issued across multiple jurisdictions under a single brand, could pose significant legal, operational and financial stability risks to the European Union.
At the time, Scotti said such stablecoins should be restricted to jurisdictions with equivalent regulatory standards and be subjected to strict reserve and redemption mandates. She cited concerns that cross-border issuance could undermine EU oversight frameworks.
However, she also acknowledged that stablecoins may lower transaction costs and improve payment efficiency.
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