Italy's central bank will issue guidelines in the coming days on how to implement the European Union's new cryptocurrency laws, known as MiCA.
Bank of Italy Governor Fabio Panetta said in a speech to the Italian Banking Association that the guidelines will be aimed at effectively implementing MiCA and protecting cryptocurrency holders.
MiCA identifies two main categories of tokens suitable for payments: asset-linked tokens (ARTs) and electronic money tokens (EMTs). The Bank of Italy believes that only EMTs can fully function as a means of payment, since their value is linked to an official currency, such as the US dollar. While the value of ARTs is linked to one or more assets, such as the gold-backed PAX Gold token (PAXG).
Panetta named Bitcoin and Ethereum “crypto assets without collateral” which, according to him, have no intrinsic value and are akin to gambling. He noted that the main goal of crypto investors is to sell their assets at a higher price. He also expressed concern that cryptocurrencies can be used to evade tax regulations and combat money laundering.
Panetta emphasized that cryptocurrencies do not have the characteristics necessary to fulfill the three basic functions of money: a means of payment, a store of value, and a unit of account. He also noted that the number of investors in “unsecured” cryptocurrencies is small, but could grow in the future.
Author's opinion: Please note that we will not be able to pay with a single share in any supermarket – not even Coca-Cola. We will not be able to pay for gas, electricity or heating with a bond (debt obligation) of any country. Nevertheless, the financial market exists. Could Mr. Panetta explain to us the difference between the stock, commodity and cryptocurrency markets. Don't they all work on the same principle: creating added value (buy cheaper, sell more expensive)…..
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