The line between traditional banking and the world of cryptocurrency is blurring as banks increasingly delve into digital assets. However, this shift has raised concerns from European Central Bank (ECB) officials who fear it could damage customer trust. In a recent presentation, ECB policymaker and Bank of Italy Governor Fabio Panetta sounded the alarm, warning that banks venturing into cryptocurrencies risk undermining public confidence in financial systems. He highlighted that as banks partner with crypto firms, they might inadvertently confuse customers into thinking their services are similar to traditional banking products, potentially leading to significant fallout if losses occur. He emphasized that maintaining trust is vital for the stability of the entire financial system and that this can be a major challenge for banks as the crypto space expands.