At the Economics of Payments Conference in Rome on Sept. 18, Chiara Scotti, vice director of the Bank of Italy, expressed concerns regarding multi-issuance stablecoins, warning that they could pose significant risks to the EU's financial stability if issuers are based outside of equivalent regulatory jurisdictions. Scotti stated that while these stablecoins could enhance global liquidity, they also bring major legal, operational, liquidity, and financial stability risks. She emphasized the need for such stablecoins to be limited to jurisdictions with comparable regulatory standards, ensure redemption at par, and implement cross-jurisdictional crisis protocols. Despite these risks, she acknowledged that stablecoins can reduce transaction costs and be effective payment instruments, provided they are pegged to a single fiat currency, thus ensuring a high level of customer protection through the right to redemption at their nominal value.

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