March 27, 2024
Deputy Governor Piero Cipollone vies for ECB's top CBDC role
Latest Cryptocurrency News

Bank of Italy’s Piero Cipollone Nominated as Sole Candidate to Lead ECB’s CBDC Initiative

Piero Cipollone, in a legislative hearing on Monday, defended his proposal for the digital euro as he seeks approval to succeed Fabio Panetta as the head of central bank digital currency (CBDC) at the European Central Bank (ECB). Cipollone, who has held the position of deputy governor at the Bank of Italy since 2020, is the only candidate to replace the crypto-skeptic Panetta when he steps down from his role on the central bank’s executive board in November.

Cipollone’s statements on Monday indicate his alignment with existing ECB digital currency policies. He emphasized that a digital euro would enhance the capability to transact using public funds across Europe with technology and infrastructure rooted in Europe. He also pledged offline functionality, accessibility, and robust privacy protection solutions. Cipollone’s eight-year term has received approval from eurozone finance ministers and the ECB itself, making his appointment virtually certain. Lawmakers also showed strong support for his candidacy, with a 30-3 favorable vote in a non-binding decision following the debate.

Panetta, who has previously criticized private cryptocurrencies as a profit-driven Ponzi scheme, has been at the forefront of ECB efforts regarding the digital euro, despite considerable skepticism from lawmakers regarding its benefits for retail users.

In response to a prior questionnaire from lawmakers, Cipollone acknowledged that blockchain innovations carry significant risks. However, he suggested that the challenges associated with a CBDC‘s impact on financial stability and lending could be managed through measures such as imposing limits on citizen holdings.

Image by pixabay

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