According to Italy, the European Union can save money with crypto money

Deputy Chairman of the Central Bank of Italy Fabio Panetta made a keynote speech on central bank-supported crypto-currency at the SUERF / BAFFI CAREFIN Central Conference in Milan. According to Fabio Panetta, the European Union can save money with crypto money

The European Union can save money with crypto money

According to the Italian Deputy Chairman of the Central Bank Fabio Panetta, the crypto money not. However, if Central Bank-supported crypto-bills (CBDCs) are issued, the cryptographic funds are held accountable and supported by assets held by the bank.

According to Fabio Panetta, CBDCs allow production, transport, and other forms of transport to take place. the costs incurred can be reduced. According to Fabio Panetta, these costs are equivalent to about 76 billion euros, about 50 percent of the European Union's annual budget.

The European Union should receive central bank support for cryptographic money

As a potential investment instrument of the CBDCs, Fabio Panetta adds that the potential cost-effectiveness gains of a CBDCs, when combined with distributed notebook technology (DLT) , the crypto money has almost zero storage cost. Fabio Panetta underlines that CBDCs may become functional as an asset free of credit and liquidity risks through the unique features of CBDCs. In this way, it may become an alternative to the storage of assets, including bank deposits. However, Fabio Panetta also stressed his concerns over abandoning bank legislation and threatening the financial system as a whole as a consequence of the profitability of the interest rate system used by the banks in lending models, if the CBDCs were transited.

Fabio Panetta notes that these worries are a result of CBDCs' that he could make legislation up-to-date and direct the market to a narrow banking model that needs to be rethought. According to Fabio Panetta, traceability and privacy issues are probably the most important issues facing CBDCs. In the past month, the Bank of England has published two studies on CBDCs. These studies include analyzes on the risks of CBDCs in the province. It is stated in the report that the CBDCs will not have any negative effects on the total liquidity provision for private loans or for the economy. In the second study, it is emphasized that CBDCs like Fabio Panetta could be a competitor for commercial banks.


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