Bank of Italy's Panetta says technology no silver bullet in payments
MILAN, March 12 (Reuters) - Technology advances reshaping the global payments landscape are no cure‑all, a top European Central Bank policymaker said on Thursday, warning that monetary stability requires preserving the role of central bank money.
Bank of Italy Governor Fabio Panetta told the Financial Stability Board's cross-border payments summit in London that innovation can help cut costs, speed up transfers and widen access, but cannot on its own remove structural barriers or ensure trust.
Panetta said:
As private digital solutions proliferate, central bank money must remain the ultimate settlement asset underpinning a resilient two‑tier monetary system.
Outdated infrastructure, limited system access, weak standardisation and forex costs are key reasons retail cross‑border payments remain slow and costly.
He urged faster adoption of ISO 20022 data requirements and greater automation of compliance checks.
New technologies such as tokenised deposits and well‑regulated stablecoins can support efficiency but must evolve alongside – not replace – central bank money.
