Italy’s Banks Endorse Digital Euro, Push ECB to Spread Out Massive Rollout Costs

The European Central Bank (ECB) is advancing its plans for a digital euro. Italian banks have officially expressed their support for this new currency. The Italian Banking Association (ABI) stated its strong backing. They believe the digital euro is necessary. It helps secure “digital sovereignty” for Europe.

However, the banks raised a major concern about the project’s funding. They face very high costs to implement the new digital payment system. Therefore, the ABI requested the ECB to act. They want the large capital expenditures to be spread out over a longer time.

The project is moving forward despite some resistance. Other European banks fear the digital euro could pull deposits away from commercial lenders. The ECB plans to begin a pilot phase by 2027. The full launch is tentatively scheduled for 2029. The ABI also proposed a “twin approach.” This plan involves running the ECB’s digital euro alongside new commercial bank digital currencies. This dual strategy will help Europe keep pace globally.