CEAN News | Business News
In a recent legislative hearing, Piero Cipollone, Deputy Governor of the Bank of Italy, staunchly defended the concept of a digital euro. As the only candidate to succeed Fabio Panetta on the European Central Bank’s (ECB) executive board, Cipollone’s remarks on Monday indicate a continuation of the existing ECB policies concerning digital currencies.
Cipollone, who has been serving as the deputy governor of the Bank of Italy since 2020, is set to take over from Panetta when he steps down in November. His statements suggest that there will be little deviation from the current ECB stance on central bank digital currencies (CBDCs).
Addressing the European Parliament’s Economic and Monetary Affairs Committee, Cipollone argued that the digital euro would “strengthen the capability for transactions using public money across Europe through technology and infrastructure that is Europe-based.” He further assured the committee members of offline functionality, easy accessibility, and robust measures to safeguard privacy.
Cipollone’s eight-year term has already received the nod from both the eurozone finance ministers and the ECB, virtually confirming his upcoming role.
Fabio Panetta, the outgoing executive board member, has been a vocal critic of private cryptocurrencies, dismissing them as Ponzi schemes motivated by greed. He has also spearheaded the ECB’s initiatives on a digital euro, in spite of substantial skepticism from lawmakers regarding its real-world utility for retail consumers.
In response to a prior written questionnaire circulated among legislators, Cipollone stated that while blockchain technology presents “significant risks,” the ramifications for financial stability and lending due to a CBDC could be mitigated. He suggested that limitations could be set on the holdings of digital euros by individual citizens as a measure to manage these risks.
Notably, a recent letter from a group of bipartisan EU lawmakers has called on the ECB to delay any decisions about launching a retail CBDC. The legislators have urged that a consensus be reached on legal constraints in contentious areas, such as privacy, before moving forward with the project.
In summary, as Piero Cipollone prepares to step into his new role at the ECB, his remarks signal a future where the digital euro remains a priority. However, the path to its realization continues to be fraught with regulatory challenges and questions about its ultimate utility.