Italian Central Bank Urges EU Stablecoin Rules: A Call for Clarity and Stability  

On September 18, 2025, the Italian Central Bank urged EU stablecoin rules to tackle risks from cross-border issuance, as Deputy Governor Chiara Scotti emphasized during a Rome conference. This push highlights the need for explicit guidelines under the MiCA framework to safeguard consumers and markets, particularly for stablecoins redeemable in the EU but issued externally. Amid a $3.5 trillion cryptocurrency market, the Italian Central Bank urged EU stablecoin rules to avert liquidity crises and systemic threats. This article examines the bank's position, identified risks, proposed solutions, MiCA's role, and potential impacts on the crypto ecosystem.

The Bank's Position on Cross-Border Stablecoins

The Italian Central Bank urged EU stablecoin rules to address ambiguities in multi-country issuance models, where stablecoins are created across jurisdictions for enhanced liquidity and scalability. Scotti noted that while these arrangements foster innovation, they introduce legal, operational, and stability challenges when issuers operate outside the EU. The European Commission views current laws as sufficient for interchangeability, but the ECB warns of gaps that could undermine financial stability. This Italian Central Bank urged EU stablecoin rules initiative seeks to bridge these views, ensuring a harmonized approach within the 27-member bloc.

• Multi-country models: Boost liquidity but create jurisdictional risks.
• Commission stance: Existing regs may suffice.
• ECB concerns: Potential for systemic weaknesses.

Highlighted Risks and Quotes

Scotti underscored the Italian Central Bank urged EU stablecoin rules due to risks like sudden redemption demands from non-EU issuers, potentially straining liquidity and requiring asset transfers that disrupt operations. She stated: “This arrangement can boost global liquidity and scalability, but when the issuer is outside the EU, it creates serious legal, operational, and stability risks.” Such scenarios could amplify volatility in the $3.5 trillion market, affecting user confidence and cross-border flows.

• Liquidity risks: Non-EU redemptions straining operations.
• Quote: Scotti on "serious legal, operational, and stability risks."
• Systemic impact: Potential market disruptions.

Proposed Solutions and Framework

To resolve these, the Italian Central Bank urged EU stablecoin rules through new legislation or standard-setting to clarify redemption processes and issuer responsibilities. This includes mandatory transparency on reserves and contingency plans for cross-border events. Under MiCA, stablecoins are classified as electronic money tokens (EMTs), but the framework lacks specifics for external issuers. Italy advocates for timely updates to MiCA, promoting innovation while prioritizing stability.

• Solutions: Legislation for redemption clarity and reserves.
• MiCA role: Classifies stablecoins as EMTs.
• Advocacy: Harmonized EU standards.

Broader Market Implications

The Italian Central Bank urged EU stablecoin rules could influence the $3.5 trillion cryptocurrency market by fostering trust in stablecoins, which hold $170 billion in circulation. Clear rules might accelerate adoption in payments and DeFi, but delays could heighten risks from issuers like Tether. For investors, this signals a maturing regulatory landscape, balancing growth with safeguards.

• Stablecoin circulation: $170 billion globally.
• Adoption boost: In payments and DeFi.
• Investor note: Maturing regs for safer participation.

Final Insights

The Italian Central Bank urged EU stablecoin rules on September 18, 2025, to mitigate cross-border risks under MiCA, as Scotti warned of stability threats from external issuers. In a $3.5 trillion market, this call promotes innovation with safeguards. For actionable tips, review MiCA updates and diversify stablecoin exposure. Monitor ECB and Commission responses for progress on the Italian Central Bank urged EU stablecoin rules.