Bank of Italy Pushes EU to Explore Tokenized SEPA Payment System

The Bank of Italy has urged European policymakers to examine the potential of a tokenized extension of the Single Euro Payments Area (SEPA), highlighting growing interest in integrating blockchain-style infrastructure into existing financial systems. The proposal reflects increasing attention on how tokenization could modernize Europe’s payment rails.

Tokenization as an Evolution of European Payment Infrastructure

In a speech in Rome, Bank of Italy Deputy Governor Chiara Scotti said tokenization has become “more relevant” and called for a complementary strategy that builds on Europe’s established payments framework. She noted that rather than replacing current systems, tokenized solutions could evolve alongside them.

Scotti emphasized that a tokenized SEPA framework could leverage Europe’s shared standards and interoperability to support faster and more efficient cross-border transactions. SEPA already enables euro-denominated payments across EU member states and several non-EU countries, processing transactions at massive scale across the region.

Digital Euro Development and Policy Considerations

Scotti also pointed to the digital euro as the most advanced area of central bank digital currency research within the European Central Bank ecosystem. Ongoing analysis covers monetary policy, financial stability, privacy, and payment efficiency, alongside its interaction with private sector solutions.

Stablecoins and Tokenized Deposits Under Review

While acknowledging the potential of stablecoins and tokenized deposits, policymakers noted that their broader systemic impact remains uncertain. The European Central Bank continues testing digital euro infrastructure, including recent collaborations with European payment standard organizations to explore real-world transaction processing models.