Italy Banks Support ECB's Digital Euro Initiative
- Italy’s banks embrace ECB digital euro but ask for phased costs.
- Deliberations involve high-level EU policy figures.
- Potential competitive impact on euro stablecoins awaits legislative approvals.
Italian banks voice support for the ECB’s digital euro project, advocating a phased cost approach, connecting with the ECB in Rome on October 2023, per Reuters.
The digital euro aims to enhance Europe’s payment landscape, though the project introduces significant financial burdens requiring a phased implementation approach to minimize impact on existing banking structures.
Italy Banks Support ECB’s Digital Euro Initiative
Italy’s banks have expressed support for the European Central Bank’s (ECB) digital euro proposal but are advocating for a phased approach to bear the financial burden. The Italian Banking Association, led by Marco Elio Rottigni, emphasizes digital sovereignty.
Marco Elio Rottigni leads the discourse for the banks, requesting that the substantial costs be spread out over time. “The sector supports the digital euro as a step toward digital sovereignty, but the capital expenditures are high and should be spread over time,” said Marco Elio Rottigni, CEO, Italian Banking Association (ABI). Piero Cipollone of the ECB supports concurrently exploring commercial and central bank digital currencies.
The digital euro project aims to protect Europe’s monetary sovereignty, promising enhanced competition in Europe’s payment landscape. Italian banks caution that the financial expenditures need careful management. ECB’s Piero Cipollone highlights the digital euro’s potential benefits.
The phased implementation is designed to align with financial constraints while ensuring digital resilience. The legislative process remains crucial, the outcome potentially influencing euro stablecoins and commercial bank offerings.
The ECB plans a technical readiness phase, with a pilot in 2027 and potential full launch by 2029. Financial markets have yet to see shifts from the announcement, maintaining current crypto and fiat alignments.
Past CBDC pilots, such as Sweden’s e-krona, indicate a limited market disruption, focusing impacts within payment and fintech sectors. Markets could respond once legislative and pilot phases progress, influencing digital euro acceptance.
