Italian central banks are urging EU stubcoin rules

Chiara Scotti, the lieutenant governor of Italy’s central bank, is calling on the European Union to adopt stupid, ridiculous regulations across borders. Speaking at a central bank conference in Rome, she warned that unclear rules could create risks for legal and financial stability.

Scotti stressed that while Stablecoins issued outside the EU, those who can redeem within the block need specific guidance to protect their users and markets.

The EU is facing the dilemma of cross-border stubcoin

Chiara Scotti, the lieutenant governor of the Bank of Italy, urged the EU to clarify how to regulate the stupidity issued in several countries. She spoke at the Central Bank Conference in Rome on Thursday.

Stablecoins are cryptocurrencies linked to Fiat Money or Commodities, and are treated in the EU as electronic money tokens (EMTs). The European Commission and the European Central Bank (ECB) disagree about how the “multicountry issuance model” fits existing rules.

A June Reuters report said the committee believes current EU regulations could allow for cross-border exchangeability of these tokens. The ECB warns that such models may threaten financial stability if not supported by clear law.

Legal and operational risks

Scotti explained that EU Stablecoin issuers could face redemption requests from owners other than the block. In the multicountry model, non-EU subsidiaries may need to move assets to cover reserve shortages. The process can bear liquidity and cause operational problems.

“This placement can increase global mobility and scalability,” Scotty said. “However, if the issuer is outside the EU, it creates serious legal, operational and stability risks.”

She said the new law or standard setting would be “timely and useful” and would help prevent systematic weaknesses.

Pressure on a unified standard

This discussion highlights the EU’s struggle to balance innovation with strong safety measures. Without clear rules, market participants face uncertainties that can slow adoption and hinder monitoring.

The EU is pushing forward a crypto assets (MICA)-regulated market to manage digital assets. However, how to handle stubcoins issued across borders remains unstable. Policymakers and industry players are awaiting further guidance to form the next stage in EU crypto policy.

Post-Italian central banks are urging that the EU Stablecoin rule was first introduced in Beincrypto.