The governor of the Italian central bank, Ignazio Visco said that authorities in Italy have started establishing a supervisory environment in anticipation of European Union legislation governing crypto.
Supervisory environment despite very few Italian crypto holders
During his address on the world economic situation in Milan, Visco emphasized the need for crypto regulation and described ongoing global, European, and Italian activities. He said, despite acknowledging that most of the economies in Europe areas are decelerating, the fall of the cryptocurrency market last year did not have “systemic consequences” because it does not have huge connections with “traditional financial intermediaries, the payments system and the real economy.”
Italy working with EU to create crypto laws
According to Visco, the Bank of Italy is also working on different uses of distributed ledger technology (DLT), such as the EU’s pilot for the regulation of market infrastructures.
The governor said that a difference should be made between crypto “with no inherent value” and those that “divert resources from productive activity and social welfare.” These must be “seriously discouraged,” he stressed, but innovations that may increase the efficiency of financial institutions should be encouraged.