Bank of Italy’s Chiara Scotti highlights financial stability risks from multi-issuer stablecoins and urges stricter regulatory frameworks.
Chiara Scotti, Vice Director of the Bank of Italy, warned that multi-issuance stablecoins, issued by multiple countries under a single brand, could jeopardize EU financial stability unless confined to jurisdictions with equivalent regulatory standards. She emphasized the importance of cross-border cooperation and robust reserve monitoring, while recognizing the benefits of stablecoins in reducing transaction costs and improving efficiency. The Bank of Italy’s comments come amid increasing concerns in Italy about the growing prominence of stablecoins in global finance.