Italy’s banking sector has voiced strong support for the European Central Bank’s (ECB) plan to launch a digital euro. The proposed central bank digital currency (CBDC) could reshape the future of money in Europe.
However, Italian banks are urging the ECB to spread out the heavy initial costs of the project. They warned that the financial burden of the rollout should be managed carefully.
Italy’s Banks Support Digital Sovereignty
According to Reuters, Marco Elio Rottigni, General Manager of the Italian Banking Association (ABI), confirmed that Italian banks support the ECB’s effort to create a digital euro.
Speaking at a press seminar, Rottigni emphasized that the banks’ support stems from the project’s vision of digital sovereignty. However, Rottigni noted that the costs involved are significant and there is a need to spread the upfront investments over time.
His comments highlight the industry’s practical concerns. Europe is taking cautious steps toward adopting a digital version of its single currency.
Furthermore, Rottigni suggested that Europe should adopt a dual approach. He proposed developing both a central bank digital currency and commercial bank digital currencies.
The bank manager pointed to the United States, where lawmakers have already passed the GENIUS Act to regulate stablecoins. He emphasized that Europe must move fast and not fall behind other major economies.
This stance reflects growing concern that the EU could lose ground to the U.S. and other global players in digital finance innovation if progress remains slow.
EU Lawmakers Reach a Compromise on the Digital Euro
The ECB’s push for a digital euro comes shortly after a key agreement among European policymakers. EU finance ministers, ECB President Christine Lagarde, and European Commissioner Valdis Dombrovskis recently reached a compromise on how to move forward with the proposal.
Under the agreement, finance ministers will have a voice in deciding whether to issue the digital euro and in setting limits on how much digital currency individuals can hold.
This measure aims to reduce fears of potential bank runs. It would prevent people from moving large amounts of money from traditional banks into digital euros.
The digital euro is expected to launch in 2029, following a pilot phase in 2027, provided that EU legislation is passed next year.
Opposition and Calls for a Scaled-Down Digital Euro Plan
Despite Italy’s enthusiasm, not all European banks share the same optimism. The German Banking Industry Committee, Germany’s top banking lobby, has voiced reservations about the plan.
Meanwhile, conservative Member of the European Parliament (MEP) Fernando Navarrete has argued for a scaled-down version of the digital euro. He believes the system should prioritize offline payments, allowing transactions without internet access.
This, he said, is better than focusing on more complex real-time operations. Navarrete added that existing central bank systems already handle such transactions efficiently, and new technologies for them are still being studied.