The digitization of commercial banks will shape the future of the European monetary system

European policymakers consistently affirm that digital commercial banks will become one of the main pillars of the future monetary system. This view is reflected in recent speeches by senior officials from the Bank of Italy, emphasizing the necessity of comprehensive and structured digitization processes.

Digital Commercial Banks Will Become a Core Foundation

According to Cointelegraph, Fabio Panetta, Governor of the Bank of Italy, shared these insights last Wednesday in a speech before the executive committee of the Italian banking association. Panetta clarified that both digital commercial bank money and central bank money will continue to serve as the backbone of the monetary system, while stablecoins will only play a supplementary role.

This distinction is very important because it reflects central banks’ strategies regarding digital assets. Panetta emphasized that the stability of any stablecoin ultimately depends on its peg to traditional currencies, which requires them to comply with government and central bank regulations rather than operate independently.

The Digitization of Currency Driven by Official Financial Institutions

The process of currency digitization is described as a long-term structural trend driven by central banks and major financial institutions, rather than emerging from privately issued crypto assets. Globally, digital payments have become a critical battleground among banks, especially as technology and political upheavals increasingly shape the economy.

Panetta warned that traditional economic variables such as investment, trade, and interest rates are increasingly influenced by political decisions rather than purely market forces. This trend is amplified by the shift in global economic gravity caused by technological advances, in a context of less stable international cooperation compared to previous industrial revolutions.

Concerns About Regulation and Risks Related to Diversified Stablecoins

In September 2025, Chiara Scotti, Deputy Director of the Bank of Italy, expressed concerns about diversified stablecoins—tokens issued across multiple legal jurisdictions under a single brand. She warned that this model could pose significant legal, operational, and financial stability risks for the European Union.

Scotti advocated for strict restrictions on such stablecoins, allowing them only to operate within jurisdictions with comparable regulatory standards and subject to rigorous reserve and redemption oversight. Her specific concern was that cross-border issuance could weaken the supervisory frameworks the EU has established to protect the financial system.

However, Scotti also acknowledged the potential value of stablecoins in reducing transaction costs and improving payment system efficiency. This balanced view reflects a reality that commercial banks and regulators must face: not to overlook technological benefits but to maintain control and financial stability.