Eurobond, digital currency: the governor indicates the way to the future of the Union

Fabio Panetta does not do politics: look at how they change in substance international economy or finance And it acts accordingly. But not even the governor of the Bank of Italy lives in the void. He sees the landslides produced by the White House. Sees how American and political tensions, those who have reported Donald Trump in power, they are downloading to the rest of the world in the form of duties and reduced growth.

Panetta also sees The forward escape of the American administration on cryptocurrenciesabove all the Stablecoins supported (in theory) by deposits in qualifications of the United States Treasury and (always in theory) convertible at any time in dollars to a stable value. The governor thinks that neither Italy nor above all Europe can afford to stay still, hoping to defend themselves in a world that changes furiously.

The final considerations of the Governor of the Bank of Italy have always been a very twentieth -century republican rite: the carabinieri with the high plume at the entrance of the room, the marked reading of the paper document, the Grisaglie in the audience. But this year the content looked to the world that perhaps awaits us even more than on other occasions: « It is necessary to change the development model that supported the continent for decades » At one point Panetta read, very in line with Mario Draghi and his « competitiveness relationship » presented in Brussels nine months ago.

With Trump to the White House, the invitation becomes more urgent and specific, because the risks are also. Panetta holds away from politics, but offers measures To make Europe – with Italy – more autonomous and solid Before the hurricane that could thicken in a more or less close future. And these choices, even the governor knows, depend on politics.

The first is called Eurobond or – so yesterday Panetta – a « European public title ». The second is called digital euroa payment tool that becomes essential in the face of the competition of cryptocurrencies. These are the two tools that serve the euro area to « strengthen their strategic autonomy » – still the words of Panetta – or, in other words, to be less vulnerable to attempts to coercion of the other great powers.

The digital euro sounds almost like a technological curiosity: the possibility (not the obligation) to pay a coffee at the bar or a TV center via the mall through An app connected to the account of each citizen directly at the European Central Bank; It is the digital equivalent of the cash that today retires, less and less often to the ATM. The digital euro could then extend to international payments, the sending of the remittances of a migrant to the country of origin or the balance of a coffee match from Brazil.

All this becomes strategic – did Panetta understand yesterday – because in the meantime The American administration is making stablecoins its official policy. Trump has signed an executive order in this regard and a law, « Genius Act », already travels to the congress. Stablecoins at first sight seem like a private version of the digital currency and the American administration openly aims to spread its use all over the world, because they are supported by US state government bonds in dollars: Using them to pay a car rental in Taormina or a short rent in Florence means transferring deposits from euro to dollars, without understanding it by eroding our monetary sovereignty and financing the American debt. Trump wants Stablecoin for this and because they represent a method of personal enrichment for him (the president today emits his Stablecoin, called USD1).

But Panetta warns some enormous risks of instability inherent in these cryptocurrencies supported by the White House and potential use for drug trafficking or recycling. These theoretically « stable » crypt are in fact not supervised and regulated in any way. Yet they can also take hold in Europe and Italy in the coming years, if a solid and reliable alternative is not formed in euros: « We need a response to the height of the technological transformation in progress », says the governor.

In the same spirit it goes its I invite you to accelerate on a European Eurobondtoday very useful to finance e pursue in common investments « in technology and research in the field of defense ». But here too there is a deeper political sense: a common European title is needed, says Panetta, which acts as a « common, solid and credible reference to the entire financial system ». It would be the European equivalent of an American Treasury, a liquid and safe assets on which a single, vast European capital market can be founded capable of financing growth and innovation.
It only needs politics decides. But will it be Europe up to par? And Italy?