He said there is an "urgent need globally for regulation to protect consumers from the risks of cryptoassets, define minimum requirements for crypto firms’ risk management and corporate governance, and reduce the run and contagion risks of stablecoins," adding that "we should also tax cryptoassets according to their social costs."

Panetta concluded that regulation will not turn risky instruments into safe money. Instead, "a stable digital finance ecosystem requires well-supervised intermediaries and a risk-free and dependable digital settlement asset, which only digital central bank money can provide."

Panetta said it is necessary to ensure that cryptoassets are only used "within clear, regulated boundaries and for purposes that add value to society" and that it is time for policymakers to respond to the people’s growing demand for digital assets and a digital currency by making sovereign money "fit for the digital age".

The ECB was invited to step up its efforts to combat money laundering, tax evasion and other forms of financial crimes, by creating a system to better monitor large transactions.

MEPs also noted the need to monitor cryptoassets more closely. In collaboration with the European Commission, the ECB should assess the EU legal and regulatory framework on e-money, financial instruments and virtual currencies/assets.