Italian banks have expressed strong support for the European Central Bank’s (ECB) digital euro project but are urging a gradual rollout of required investments due to high implementation costs, according to Reuters.
“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.
“Costs for the project, however, are very high in the context of the capital expenditure banks must sustain — they could be spread over time,” Rottigni added.
Balancing Innovation and Cost
The ECB’s digital euro initiative aims to keep central bank money accessible in an increasingly digital economy, reduce reliance on non-European payment systems, and respond to the rise of stablecoins.
At the ECB Governing Council meeting in Florence on October 29–30, policymakers decided to move the project into its next phase following a two-year preparation period. The pilot phase is planned for 2027, with a potential full rollout in 2029, pending approval of EU legislation expected in 2026.
Diverging Views Across Europe
While Italian banks back the initiative, French and German financial institutions have voiced concerns that the digital euro could divert deposits away from commercial banks to ECB-managed wallets, potentially impacting liquidity.
Meanwhile, Fernando Navarrete, a Member of the European Parliament from Spain’s Partido Popular, has proposed a scaled-down version of the digital euro to safeguard private payment systems like Wero, backed by 14 European lenders.
Dual-Currency Vision
Rottigni also called for a “twin approach”, promoting both a central bank digital currency and digital currencies issued by commercial banks.
“What Europe shouldn’t do is fall behind,” he said.
ECB Perspective
Piero Cipollone, Member of the ECB Executive Board, emphasized that the project is designed to modernize access to central bank money.
“This would ensure that people enjoy the benefits of cash in the digital era,” Cipollone said in an official ECB interview.
“The digital euro will strengthen Europe’s payment landscape, lower costs for merchants, and foster innovation and competition.”