Italian banks, represented by the Italian Banking Association (ABI), have publicly signaled their support for the European Central Bank’s (ECB) initiative to launch a blockchain/digital-ledger powered digital euro. The endorsement is rooted in the belief that the Central Bank Digital Currency (CBDC) embodies a concept of “digital sovereignty,” which is essential for Europe to maintain its monetary relevance and compete with fast-moving payment systems from the US and China. This position contrasts with the skepticism shown by some German and French banks, which fear the new ECB-backed digital wallet could siphon deposits away from commercial lenders.
However, the ABI coupled its support with a strong demand for phased cost implementation. ABI General Manager Marco Elio Rottigni highlighted that the infrastructure upgrade costs are “very high” for the sector, estimating Italian banks’ IT costs alone at around €880 million (excluding running costs). Italian banks are urging the ECB to allow these capital expenditures to be spread out over multiple years rather than demanded as large upfront investments, arguing that a gradual schedule is necessary to avoid a budget shock and preserve the banks’ capacity for private-sector innovation.The ECB’s Governing Council has already advanced the project into its preparatory phase, with a pilot phase expected to commence in 2027 and a potential full public rollout provisionally scheduled for 2029, contingent upon the adoption of EU legislation in 2026. The Italian proposal suggests a “twin approach,” combining the ECB’s digital euro with commercial bank-backed digital currencies to ensure the continent does not fall behind in the global payments race.
, have publicly signaled their support for the European Central Bank’s (ECB) initiative to launch a blockchain/digital-ledger powered digital euro.){kind=link}