The Bank of Italy is requesting increased regulatory examination of stablecoins since they “have not proven to be stable at all,” according to them.
To avoid a potential “run” on these digital assets, Italy’s top banking body has highlighted the need for a stablecoin regulatory framework that is solid and risk-based. In its “Markets, Infrastructures and Payment Systems” report for June, the central bank emphasizes the significance of holding stablecoin issuers to the same criteria as other financial actors.
The bank is aware of the considerable harm caused to consumers by the bitcoin market and unregulated cycles. As a result, it urges authorities to apply financial conduct requirements to the stablecoin sector.
Related: SAP Digital Currency Hub opens testnet for cross-border stablecoin payments
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![Italy's Central Bank Calls for Regulation to Prevent Stablecoin Collapses image 232](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/06/image-232.png?resize=634%2C626&ssl=1)
Due to the potential influence of stablecoin dissemination on DeFi innovation and the rising interconnection between traditional and decentralized financial systems, the paper underlines the necessity for synchronization in policy interventions on stablecoins and decentralized finance (DeFi).
To avoid a potential “run” on these digital assets, Italy’s top banking body has highlighted the need for a stablecoin regulatory framework that is solid and risk-based. In its “Markets, Infrastructures and Payment Systems” report for June, the central bank emphasizes the significance of holding stablecoin issuers to the same criteria as other financial actors.
The bank is aware of the considerable harm caused to consumers by the bitcoin market and unregulated cycles. As a result, it urges authorities to apply financial conduct requirements to the stablecoin sector.
Due to the potential influence of stablecoin dissemination on DeFi innovation and the rising interconnection between traditional and decentralized financial systems, the paper underlines the necessity for synchronization in policy interventions on stablecoins and decentralized finance (DeFi).
Related: Fed Chair Powell says stablecoins should be regulated like money