The digitization of money: the new goal of European authorities

The digitization of currencies is emerging as a major structural transformation of the European monetary system. According to recent statements by Fabio Panetta, Governor of the Banca d’Italia, this development will profoundly reshape the continent’s financial architecture in the coming years.

Central Bank Digital Money at the Heart of the Future Framework

Fabio Panetta stated during a recent speech before the Italian banking association’s executive committee that digital money from central institutions and that from commercial banks will serve as the two pillars of tomorrow’s monetary system. These two forms of digital currency will underpin financial transactions, while technological advancements will continue to redefine payment methods.

The Italian governor emphasized the strategic importance of payments for banks in an increasingly competitive environment. In the face of technological upheavals and rising geopolitical tensions, the financial sector must rethink its approach to payment infrastructure and monetary transmission.

Stablecoins Kept Out of the Central Monetary System

Despite their growing popularity, stablecoins can only play a complementary and limited role. Panetta explained that the stability of these digital assets remains entirely dependent on their parity with traditional currencies, which deprives them of operational autonomy within the official financial ecosystem.

This position reflects the ongoing caution of monetary authorities toward private crypto-assets. European policymakers continue to favor a digitization led by public institutions rather than private entities or decentralized projects.

Cross-Border Stablecoin Risks in Focus

In 2025, Chiara Scotti, Vice Director of the Banca d’Italia, expressed major concerns regarding multi-issuance stablecoins. These tokens, issued simultaneously across multiple jurisdictions under a single brand, pose significant legal, operational, and financial stability risks for the European Union.

Scotti called for strict regulation of these instruments, including through geographic restrictions and demanding reserve mandates. She warned that cross-border issuance without proper oversight could bypass community supervisory frameworks and weaken monetary transmission.

A Geopolitical Context Accelerating Transformation

Currency digitization takes place in a global environment marked by increasing geopolitical fragmentation. Traditional economic variables—investments, trade exchanges, interest rates—are now increasingly influenced by political decisions rather than pure market mechanisms.

This profound transformation of the European monetary system illustrates authorities’ desire to maintain control over monetary policy and payments amid heightened strategic uncertainty.