Central Banker Warns Crypto Losses Could Damage Trust in Traditional Banking

Fabio Panetta, a policymaker at the European Central Bank (ECB), has raised concerns about the potential damage to consumer trust in traditional banking if cryptocurrency users experience losses linked to bank-provided services. His warning comes as banks increasingly partner with digital asset providers and explore integrating cryptocurrencies into their offerings. Panetta emphasizes the importance of close monitoring to understand reputational risks associated with these partnerships, especially in light of growing customer confusion about the nature of crypto products offered through banks.