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Italian banks back the digital euro but seek staggered implementation costs

Italian banks in a modern fintech hub, illuminated euro symbol split between the BCE digital euro and private solutions

The main Italian banks expressed support for the digital euro project, but demanded that implementation costs be spread over time so as not to strain the sector’s accounts, according to Reuters. The stance affects intermediaries, regulators and end users: it defines who finances the infrastructure and conditions the pace of adoption of the new means of payment.

The Italian backing, channeled through the Italian Banking Association (ABI), acknowledges that the digital euro brings “digital sovereignty”, but raises a practical problem: the investment required for Italian banks is estimated at around €880 million, excluding complex functions such as offline operation, according to ABI data. A CBDC (central bank digital currency) is money issued by the monetary authority and considered a risk-free liability of the issuer.

At the euro area level, projections for deployment range between €4,000 and €5,800 million; the monetary authority maintains that its estimate can be reduced by leveraging shared infrastructures.

Marco Elio Rottigni, Director General of the ABI, said: “We are in favor of the digital euro because it embodies a concept of digital sovereignty”, and added that the costs “could be spread over time”. That nuance reveals the tension between the strategic vision of the ECB and the spending schedules of commercial banks, which must integrate cybersecurity requirements, anti-money laundering compliance and staff training.

Context and impact of the digital euro

The ABI also promoted a dual approach: coexistence and interoperability between the digital euro issued by the ECB and possible digital currencies issued by commercial banks. The technical reason is to avoid disintermediation, that is, the outflow of deposits towards liabilities managed directly by the central bank, which could alter banking funding models.

The official timetable sets a pilot towards 2027 and indicative full deployment for 2029; that schedule will be the next milestone to be verified and will condition investment and operational deployment decisions, according to cited sources.

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