Chiara Scotti, the deputy governor of the Bank of Italy, has urged the European Union to create clear, unified regulations for cross-border stablecoins. Speaking at a conference in Rome, she warned that a lack of clear rules poses legal, operational, and financial stability risks, especially for stablecoins issued outside the EU but used within the bloc.
The debate stems from a disagreement between the European Commission and the European Central Bank (ECB) over how a “multi-country issuance model” for stablecoins fits within existing regulations. While the Commission believes current rules might allow for cross-border use, the ECB has warned that this model could threaten financial stability without specific legislation.
Scotti highlighted the operational risks involved, explaining that an EU stablecoin issuer might face liquidity strains if it has to cover redemption requests from a non-EU subsidiary. She stated that while this model could boost global liquidity, it creates “serious legal, operational, and stability risks” when the issuer is outside the EU.
The ongoing discussion underscores the EU’s challenge in balancing financial innovation with robust safeguards. Although the Markets in Crypto-Assets (MiCA) regulation is in place, the specific issue of cross-border stablecoins remains unresolved. Scotti called for new legislation or standardized rules to prevent systemic weaknesses and provide clarity for both market participants and regulators.
September 2025, Cryptoniteuae
