While endorsing the ECB’s digital euro initiative, Italian banks urge spreading rollout costs over several years to ease financial pressures.
Italian banks have voiced strong support for the European Central Bank’s (ECB) digital euro project, highlighting its potential to advance digital sovereignty in Europe. However, banking leaders caution that implementation costs are significant and should be phased over time to prevent undue strain on financial institutions.
“We’re in favour of the digital euro because it embodies a concept of digital sovereignty,” said Marco Elio Rottigni, General Manager of the Italian Banking Association (ABI), during a press seminar in Florence. He added, “Costs for the project are very high in the context of the capital expenditure banks must sustain. They could be spread over time.”
ECB Digital Euro Timeline and Plans
The ECB’s digital euro initiative is moving forward after a two-year preparatory period, with a pilot phase expected in 2027 and full rollout tentatively scheduled for 2029, pending EU legislative approval in 2026.
To support development, the ECB signed framework agreements with seven technology providers, covering fraud management, secure payment data exchange, and software development. The projects include innovative features such as alias lookup for easier transactions and offline payment capabilities.
Balancing Innovation and Bank Stability
While Italian banks advocate for the digital euro, some French and German banks have expressed concerns that a retail CBDC could drain commercial bank deposits. Rottigni proposed a “twin approach”, combining the ECB-backed digital euro with commercial bank-backed digital currencies to maintain stability in private payment systems.
European Parliament member Fernando Navarrete has also suggested a scaled-down version of the digital euro to protect private payment initiatives like Wero, a joint effort by 14 European banks.
With over 137 countries exploring central bank digital currencies (CBDCs), representing 98% of global GDP, Europe is under pressure to keep pace with global trends. Rottigni emphasized, “What Europe shouldn’t do is fall behind,” underscoring the strategic importance of implementing the digital euro in a balanced and sustainable manner.
The next few years will be crucial as the ECB and European banks navigate cost allocation, technological development, and regulatory alignment, shaping the future of digital payments across the eurozone.
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