Italian banks have voiced strong support for the European Central Bank’s (ECB) digital euro initiative, aligning with the broader goal of promoting Europe’s digital sovereignty. However, they are urging for a more gradual and balanced investment strategy to manage the significant costs associated with deploying central bank digital currency (CBDC) infrastructure.
During a recent press seminar in Florence, Marco Elio Rotini, Director General of the Italian Banking Association (ABI), affirmed the sector’s commitment to the digital euro project, calling it “a cornerstone of Europe’s technological and monetary independence.” He acknowledged the innovation behind the initiative but warned that implementation costs remain substantial. “Expenses for this project are extremely high, especially in terms of capital expenditure required from banks. These costs could be distributed over time,” Rotini suggested.
The ABI head proposed a dual-track approach, advocating for the simultaneous rollout of the digital euro and commercial bank digital currencies (CBDCs). This strategy, he argued, would enable faster progress while allowing private banks to adapt their systems to the ECB’s regulatory framework.
The comments come amid growing criticism of the project from France and Germany, where banking representatives have expressed fears that the digital euro could drain deposits from traditional financial institutions. Despite these concerns, the ECB continues to emphasize that the digital euro will enhance the availability, security, and resilience of European payment systems.
The ECB’s Governing Council, during its Florence meeting on October 29–30, confirmed that the digital euro project will now move to its next phase, following two years of preparatory research and testing. If approved by the European Parliament and Council, the pilot phase could launch in 2027, with a full rollout expected by 2029.
According to Piero Cipollone, a member of the ECB’s Executive Board, “The digital euro will allow people to enjoy the benefits of cash in the digital age. It will strengthen Europe’s payment landscape, reduce costs for merchants, and foster innovation and competition among private providers.”
In parallel, nine European banks announced in September the formation of a consortium to develop a euro-pegged stablecoin compliant with the MiCA (Markets in Crypto-Assets) regulation. This move underscores the region’s drive to remain competitive amid the global surge in stablecoin and digital asset adoption.
Conclusion: The Italian banking sector’s endorsement of the digital euro reflects both optimism and caution. While embracing digital sovereignty and technological advancement, Italian banks are urging policymakers to implement the transition prudently. The balance between innovation, stability, and affordability will determine whether the digital euro becomes a transformative success or a regulatory challenge for Europe’s financial ecosystem.
