A senior Bank of Italy official has warned that multi-issuance stablecoins — tokens issued simultaneously across multiple jurisdictions — could pose risks to Europe’s financial system if not subject to strict limits. Speaking at the Economics of Payments Conference in Rome, Vice Director Chiara Scotti said these designs amplify legal, operational, and liquidity risks, especially when issuers fall outside the EU’s regulatory perimeter.
Scotti cautioned that while multi-issuance models can boost liquidity and scale, they risk undermining the EU’s Markets in Crypto-Assets (MiCA) framework, which enforces reserve, disclosure, and governance requirements. She called for restrictions limiting such tokens to jurisdictions with equivalent regulation, mandatory redemption at par, and cross-border crisis protocols to contain potential shocks.
While noting that stablecoins can lower transaction costs and provide round-the-clock access to payments, Scotti emphasised that only single-currency–pegged tokens are truly viable for use as money. “Only stablecoins pegged to a single fiat currency are suitable for this function, also because they offer a high level of customer protection through the right to redemption at their nominal value,” she said.
Italy’s stance mirrors broader European concerns over stablecoins’ rapid rise. The country has joined France and Austria in advocating for supervisory authority to be centralised under the European Securities and Markets Authority. Earlier this year, Governor Fabio Panetta argued that a digital euro would provide a safer alternative, while Economy Minister Giancarlo Giorgetti warned that U.S. stablecoin policies could weaken the euro’s global role.
For investors, the signal is clear: Europe views stablecoins as a useful bridge between crypto and traditional finance but intends to clamp down on models it sees as destabilising. Italy’s latest intervention suggests EU regulators are preparing for a decisive role in shaping the next stage of stablecoin adoption.
