According to Fabio Panetta, a Member of the Executive Board of the European Central Bank (ECB), solid foundations for the broader digital finance ecosystem are needed to harness the possibilities of digital technologies, and that regulation alone will not be enough to address the shortcomings of cryptos.

Panetta said that a risk-free and dependable digital settlement asset provided by central bank money and new technologies for wholesale settlement are some of the areas the ECB is exploring. Panetta was speaking at the Insight Summit held at the London Business School on December 7, 2022.

Panetta is sceptical that crypto technology can replace regulated intermediaries. He further said that unbacked crypto-assets were too volatile, offered no benefits to society, transactions inefficient, did not fund consumption or investment and played no part in combating climate change.