Bank of Italy calls for tighter rules on global multi-issuance stablecoins
The Bank of Italy vice director warned that multi-issuance stablecoins pose risks to EU financial stability and should be restricted to equivalent jurisdictions.
A senior Bank of Italy official has warned that stablecoins issued by multiple entities across different countries pose significant risks to the European Union’s financial system unless they are strictly limited to jurisdictions with equivalent regulatory standards.
Speaking at the Economics of Payments Conference in Rome on Sept. 18, Chiara Scotti, vice director of the Bank of Italy, said multi-issuance stablecoins — digital tokens issued in several countries under a single brand — could increase liquidity but also bring “considerable legal, operational, liquidity and financial stability risks” if at least one issuer is outside the EU.
“Although this architecture could enhance global liquidity and scalability, it poses significant legal, operational, liquidity and financial stability risks at EU level, particularly if at least one issuer is located outside the European Union,“ Scotti said.