Italy’s 2026 Budget Law Sets 26% Tax Rate for Euro-Backed Stablecoins

Italy’s 2026 Budget Law introduces a specific tax regime for euro-denominated electronic money tokens, described as stablecoins pegged to the euro and backed by reserves held by entities authorized in the European Union.

“Regulation (EU) 2023/1114 (Markets in Crypto-Assets Regulation, or MiCA Regulation) governs the markets for crypto-assets with the aim of addressing the risks that uncontrolled development of such products could pose to the proper functioning of the payment and financial system, as well as to those who hold and use them”

Banca d'Italia

The rule provides that income derived from holding, disposal, or use of euro-backed tokens is taxed at a reduced rate of 26%, instead of the ordinary 33%, and it says that simply converting between euros and euro-denominated tokens, or redeeming the nominal value in currency, is not a taxable event.

Banca d'Italia

The same source frames the measure as part of a broader context aligned with the EU’s MiCA Regulation, which it says was approved in 2023 and operative since 2024.

It also says a permanent board for oversight and coordination will be established within 60 days of the Budget Law coming into force, with functions including monitoring sector risks, countering fraud and abuses, and promoting a responsible and legal use of crypto-activities.

The article adds that members of the board will not receive compensation or expense reimbursements, making the body cost-free for the State.

The MiCA Regulation (EU) 2023/1114 governs the markets for crypto-assets, aiming to address risks that uncontrolled development of such products could pose to the proper functioning of the payment and financial system and to those who hold and use them.

It introduces in the European Union a harmonized framework for issuance, public offering and admission to trading, and for the provision of services relating to electronic money tokens (EMTs), asset-referenced tokens (ARTs), and the crypto-assets in the “other than” category.

Cointelegraph

The source says MiCA entered into force on 29 June 2023 and is applicable from 30 June 2024 for provisions relating to the issuance, public offering and admission to trading of EMTs and ARTs and from 30 December 2024 in its entirety.

At the national level, it states that Legislative Decree No. 129/2024 implemented MiCA and designated Consob and the Bank of Italy as competent authorities under it, delineating their respective powers.

It also notes that the regulatory framework is completed by detailed secondary-level rules in the form of regulatory technical standards (RTS) and implementing standards (ITS) as well as Guidelines (GLs) issued or in the process of being prepared by the European Authorities, EBA and ESMA.

In Monaco at the WAIB Summit 2026, representatives from Franklin Templeton and BNP Paribas said tokenization is boosting EU capital efficiency by streamlining settlement, improving collateral mobility, and creating new opportunities for cross-border financial activity.

“Large financial institutions are turning to tokenization to improve capital efficiency and liquidity, according to representatives from Franklin Templeton and BNP Paribas”

Cryptonews.net

Rafael Mastroberardino, head of digital assets partnership development at Franklin Templeton, said tokenization offers institutions more “optionality and flexibility,” while Julien Clausse, head of BNP Paribas CIB’s tokenization platform, said blockchain’s ability to host multiple assets on the same chain could unlock institutional use cases.

The same coverage ties the momentum to specific market moves, including that on March 18 the U.S. Securities and Exchange Commission approved Nasdaq’s pilot proposal to support trading of tokenized versions of high-volume stocks and securities.

It also says that on March 24 the New York Stock Exchange partnered with tokenization platform Securitize to develop blockchain-based trading infrastructure for Wall Street, including tokenized shares of stocks and exchange-traded funds.

Separately, IBM’s discussion of central bank digital currencies describes CBDCs as digital currencies controlled by the central banks of countries and says that “more than 130 central banks are actively exploring CBDCs” while the European Central Bank recently launched a legislative proposal for adopting a digital euro.