Italy’s central bank deputy governor Chiara Scotti has called on the European Union to adopt clear and unified regulations for cross-border stablecoins. Speaking at a central banking conference in Rome, she warned that unclear rules could create legal and financial-stability risks.
Scotti stressed that stablecoins issued outside the EU but redeemable inside the bloc require specific guidance to protect users and markets.
EU Faces Cross-Border Stablecoin Dilemma
Chiara Scotti, deputy governor of the Bank of Italy, urged the EU to clarify how stablecoins issued in several countries should be regulated. She spoke on Thursday at a central banking conference in Rome.
Stablecoins are cryptocurrencies tied 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 on how a “multi-country issuance model” fits existing rules.
A Reuters report in June said the Commission believes current EU regulations may allow cross-border interchangeability of these tokens. The ECB has warned that such a model could threaten financial stability if not backed by clear legislation.
Legal and Operational Risks
Scotti explained that EU stablecoin issuers might face redemption requests from holders outside the bloc. In a multi-country model, a non-EU subsidiary might need to move assets to cover reserve shortages. That process could strain liquidity and create operational problems.
“This arrangement can boost global liquidity and scalability,” Scotti said. “But when the issuer is outside the EU, it creates serious legal, operational, and stability risks.”
She said new legislation or standard-setting would be “timely and useful,” helping prevent systemic weaknesses.
Pressure for Unified Standards
The debate highlights the EU’s struggle to balance innovation with strong safeguards. Without clear rules, market participants face uncertainty that could slow adoption and hinder oversight.
The EU has advanced the Markets in Crypto-Assets (MiCA) regulation to govern digital assets. Yet how to treat stablecoins issued across borders remains unsettled. Policymakers and industry players are waiting for further guidance that will shape the next phase of EU crypto policy.
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