Bank of Italy Calls for Increasing Control Over Stablecoins

The Bank of Italy has advocated for the development of a regulatory framework for digital currencies pegged to fiat money, in order to ensure transparency and protect citizens investing in such currencies.

To this end, the Central Bank has released a report proposing the implementation of a licensing system for issuers of tokens, in order to hold them to the same standards as participants in traditional markets.

Further, analysts have noted that by regulating stablecoins, the authorities will be able to control issuers, which is essential for the proper functioning of decentralized finance (DeFi) projects in an increasingly global digital currency market.

Finally, the Central Bank has also urged other countries to cooperate in order to devise a common regulatory framework for the industry.