European Central Bank (ECB) Executive Board member Fabio Panetta has highlighted the growing influence of crypto assets and the need for a technological response, including the development of a digital euro. Panetta warned that losses in the crypto market could undermine confidence in traditional banks. The digital euro project is advancing, with discussions focusing on whether Europeans will trust a virtual currency as a future means of payment. The Bank of Italy has also emphasized the digital euro's importance in addressing risks associated with cryptocurrencies.