Fabio Panetta, president of Italy’s National Bank and an ECB official, raised concerns about growing ties between banks and Bitcoin.
He warned that losses from crypto services could damage public trust in traditional banking institutions.
During the Bank of Italy’s annual report event, he urged stricter regulation for banks offering crypto-related services.
He explained that partnerships between banks and digital asset firms blur the line between traditional finance and cryptocurrency.
This confusion could mislead customers—especially if they suffer losses from crypto investments.
Banks Deepen Involvement in Crypto Services
In 2023, Intesa Sanpaolo, Italy’s largest bank, launched a cryptocurrency trading desk and began processing spot crypto transactions.
Then, in January 2025, the bank invested €1 million in Bitcoin to test the market.
Meanwhile, Spain’s Santander is also planning to expand its cryptocurrency services.
According to sources, the bank may soon offer stablecoins and cryptocurrencies to the public through its online platform.
This development clearly signals growing interest among traditional banks in digital assets.
As a result, more banks may follow as demand for crypto services continues to rise.
Therefore, regulators are now watching closely to ensure consumer protection and financial stability.
Stablecoins and Payments’ Future
Stablecoins are digital assets linked to fiat money or commodities. Recently, they’ve gained traction in global financial markets.
However, if major tech firms push stablecoins without oversight, payment systems may face serious risk and disruption.
Without a doubt, strong regulation is needed. People can’t fully trust stablecoins without clear and enforceable rules.
Instead of banning crypto, regulators should embrace change and adapt to the fast-growing digital finance world.
To address this, the digital euro is being developed. It helps central banks stay competitive and relevant.
As a result, users may have a secure option backed by trusted institutions, not just private crypto creators.
Furthermore, this digital currency aims to balance innovation and financial safety in the face of rising crypto use.
