Key Points
- •Italian banks endorse the digital euro project.
- •A phased approach for implementation costs is proposed.
- •This proposal addresses concerns over high capital expenditure.
- •Stablecoin competition contributes to the appeal of a digital euro.
Digital Euro Initiative Supported by Italian Banks
Italian banks, represented by the Italian Banking Association (ABI) and its General Manager Marco Elio Rottigni, have expressed their support for the digital euro project. This initiative was announced by the European Central Bank (ECB) on November 7, 2025, in Florence. Their endorsement, however, is contingent upon the ability to spread the significant implementation costs over an extended period. This reflects the financial sector's concerns regarding the substantial capital expenditure required for such a large-scale project.
The European Central Bank is actively leading the development of the digital euro with the primary objectives of maintaining monetary sovereignty and diminishing reliance on non-European service providers. Italian banks have clearly articulated that the substantial capital expenditure commitments necessitate a phased approach to cost management. Marco Elio Rottigni specifically highlighted these financial considerations in a recent statement.
Phased Approach for Effective Cost Management
The proposal put forth by Italian banks for a phased implementation of costs is a direct response to the industry's need to effectively manage financial strain. This approach aligns with previous responses to standards like PSD2, which allowed financial institutions a period to adjust. The demand for flexibility in the implementation process is a critical priority for these banks.
This proposed phasing of costs by banks underscores the potential for long-term financial savings and the sustained health of their financial operations. Furthermore, ongoing scrutiny of the stablecoin market persists, with the digital euro aiming to serve as a counterbalance to their increasing proliferation without causing immediate disruption to existing cryptocurrencies.
Addressing Challenges Through Strategic Phasing
Despite general support for the digital euro, concerns regarding potential deposit outflows present significant challenges. The reactions from Italian, French, and German banks alike emphasize the critical importance of a strategic and phased rollout to facilitate a smoother transition. Effective coordination among all European stakeholders is deemed essential for the successful implementation of the digital euro.
Current insights suggest that the adoption of regulated and strategically planned rollouts could effectively mitigate potential obstacles that may arise during the implementation phase.
We're in favour of the digital euro because it embodies a concept of digital sovereignty. Costs for the project, however, are very high in the context of the capital expenditure banks must sustain, they could be spread over time. — Marco Elio Rottigni, General Manager, Italian Banking Association (ABI)
Historical precedents, such as the implementation of the PSD2 standard, demonstrate successful adaptations when phased approaches are employed. It is anticipated that regulators will prioritize robust stakeholder engagement to ensure a stable and effective implementation of the digital euro.