Regulation
Bank of Italy challenges Bitcoin!
17:00 ▪ 3 minute read ▪ by Fenelon L.
The Bank of Italy is set to publish its cryptocurrency guidelines, marking a crucial step in the implementation of the European Union’s MiCA regulation. In a statement that is already causing a stir, Governor Fabio Panetta questions Bitcoin’s status as a currency, raising fundamental questions about the future of cryptocurrencies in the country.
A rigorous implementation of the European framework
The Bank of Italy is working on developing detailed guidelines to implement the MiCA regulation. In fact, in his speech on July 9 to the Italian Banking Association, Fabio Panetta highlighted the dual ambition of these guidelines: to ensure a rigorous implementation of MiCA and to strengthen the protection of cryptocurrency users.
The Italian regulator establishes a crucial distinction between two categories of tokens that meet the payment criteria:
- Asset-Referenced Token (ART): These tokens are indexed to a basket of diversified assets, with the aim of offering greater stability.
- Electronic Money Tokens (EMT): These tokens are backed by a single official currency, making them preferable for everyday transactions.
Panetta emphasizes that only EMTs, whose value is directly tied to fiat currency, can “fully assume the role of a means of payment while maintaining public trust.” He sees these tokens as the most suitable to perform this function.
A Cautious Approach to the Challenges of the Cryptocurrency Industry
The Bank of Italy maintains increased vigilance towards decentralized cryptocurrencies such as Bitcoin and Ethereum. Panetta then highlighted the potential challenges, emphasizing the risk of using these assets to circumvent tax regulations and anti-money laundering measures.
He argues that these cryptocurrencies lack the essential attributes to fulfill the three fundamental functions of money: medium of exchange, store of value, and unit of account.
As part of its regulatory strategy, Italy has already planned a series of deterrent sanctions. Offences, ranging from market manipulation to insider trading, could be punished with fines of up to 5 million euros.
However, despite this cautious approach, Italy remains receptive to financial innovation. Therefore, the Central Bank launched an ambitious program last year, aimed at familiarizing Italian financial institutions with the concepts of decentralized finance (DeFi) and tokenized assets.
Enhance your Cointribune experience with our Read to Earn program! Earn points for every article you read and access exclusive rewards. Sign up now and start earning rewards.
Click here to join “Read to Earn” and turn your passion for cryptocurrencies into rewards!
Fenelon L.
Passionate about Bitcoin, I like to explore the intricacies of blockchain and cryptocurrencies and share them with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I have understood that Bitcoin is the tool that can make this possible.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Do your own research before making any investment decisions.