Italy’s Governor Fabio Panetta has voiced concerns over MiCA’s effectiveness in regulating crypto-assets, urging a more robust approach for navigating the complex and rapidly evolving European financial landscape. In his annual report, Panetta argues that only a digital euro issued by the Central Bank can effectively address these challenges and provide stability in the volatile crypto market. 🔒 💰 While MiCA regulations were enacted in June 2023 with implementation beginning in December 2024, Italy’s experience shows the effectiveness of MiCA is lacking, as few stablecoins have been issued despite significant growth in crypto custody and trading services. The report highlights how inadequate regulation leaves investors exposed to risks from unregulated foreign platforms. Panetta calls for urgent international cooperation on crypto regulation to ensure investor protection. 🤝 Panetta believes a digital euro, backed by the central bank, is the ideal solution for navigating the complexities of this emerging financial system. Only public digital currency can deliver trust and functionality in the rapidly evolving crypto world. The recent refusal of Tether to comply with MiCA further underscores the urgency for concrete action, highlighting Europe’s need to solidify its monetary sovereignty and economic stability. This call for action compels Europe to act decisively on developing a digital euro as a key resilience tool against the challenges posed by cryptocurrency.