Italian Banks Endorse Digital Euro with Investment Concerns

Italian banking institutions have expressed support for the European Central Bank’s (ECB) digital euro project, while advocating for a more gradual investment in the technology, according to Reuters.
Marco Elio Rottigni, CEO of the ABI, stated at a press seminar in Florence that he supports the idea of CBDC as it “embodies the concept of digital sovereignty.”

“However, the costs of the project are very high considering the capital expenditures that banks must bear, and they could be spread over time,” he added. 

Rottigni advocated for a dual approach: the simultaneous implementation of CBDC and commercial banks’ digital currencies, which can develop more rapidly.
The ABI’s comments come amid criticism of the project by French and German representatives, who fear the digital euro could draw deposits away from financial institutions. 
The European CBDC plan aims to ensure the accessibility and relevance of central bank money in a digitizing economy, reduce reliance on non-European payment service providers, and respond to the growing popularity of stablecoins, according to the regulator. 
At a meeting in Florence on October 29-30, the ECB’s Governing Council decided to move the digital euro project to the next stage following a two-year preparatory period.
If the relevant legislation is passed, the pilot phase will commence in 2027, with a full launch expected in 2029.

“The digital euro will allow people to enjoy the benefits of cash in the digital age. It will enhance the resilience of the European payment landscape, reduce costs for merchants, and create a platform for innovation, scaling, and competition for private companies,” noted ECB Executive Board member Piero Cipollone.