Italian banks have expressed their support for the European Central Bank’s (ECB) digital euro initiative, but are calling for the implementation costs to be spread over several years due to the financial burden it poses to the sector.
“We support the digital euro because it embodies the concept of digital sovereignty,” Marco Elio Rottigni, director general of the Italian Banking Association (ABI), told a press seminar in Florence, Reuters reported on Friday.
“However, the project costs are very high in the context of the investment outlays that banks must incur. They may be spread over time,” Rottigni added.
The comments come after the central bank digital currency (CBDC) project faced resistance from some French and German banks, which fear the introduction of an ECB-backed retail wallet could dehydrated up deposits from commercial lenders.
Related: The digital euro CBDC is “a symbol of confidence in our common destiny,” said the head of the ECB
The ECB sets a 2029 target for the introduction of a digital euro
At its meeting on 29-30 October in Florence, the ECB’s Governing Council approved the project’s transition to the next phase, after a two-year preparatory period. The pilot phase is expected to start in 2027, with full implementation tentatively scheduled for 2029, pending the adoption of EU legislation in 2026.
According to the report, MEP Fernando Navarrete, who is leading the parliamentary review of the proposal, recently presented a draft report calling for the introduction of a scaled-down version of the digital euro to protect private payment systems such as Wero – a joint initiative of 14 European banks.
Rottigni said Europe should pursue a “twin approach” by combining the ECB’s digital euro with digital currencies backed by commercial banks. “Europe should not be left behind,” he added.
Related: The Central Bank of Malaysia sets a three-year roadmap to pilot asset tokenization
The ECB signs agreements with technology companies to develop the digital euro
Last month, the ECB finalized framework agreements with seven technology providers to support the development of a potential digital euro. The agreements cover fraud and risk management, secure payment data exchange and software development.
The companies involved include fraud detection specialist Feedzai and security technology company Giesecke+Devrient (G+D).
According to the ECB, the selected companies will also develop features such as “alias lookup”, enabling users to send and receive payments without knowing the recipient’s payment service provider and offline payment options.
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