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- Italian banks back the ECB’s digital euro, urging gradual rollout.
- Europe seeks balance between innovation and financial stability with CBDC.
- Diverging opinions surface as Italy pushes for digital sovereignty.
Italy’s top banks have voiced strong support for the European Central Bank’s plan to launch a digital euro. According to Reuters, Marco Elio Rottigni, General Manager of the Italian Banking Association, stated that banks support the initiative but prefer to spread the initial costs over time.
He stated that the digital euro is considered a crucial step that can lead to digital sovereignty in Europe. Italian banks believe that the project will enhance financial autonomy while maintaining a close eye on effective regulation within the eurozone.
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Italian Banks Advocate Dual Strategy for Digital Transition
According to Rottigni, the Italian banking industry encourages a bipolar approach that underpins both the ECB-supported digital euro and commercial bank digital currencies. This, he argued, would make Europe competitive with countries like the United States. In recent times, the U.S. has made progress in the regulatory field of digital assets with the introduction of the GENIUS Act, which has strengthened its stance in the field of financial innovation.
On the European level, a compromise has been reached among the Ministers of Finance, the ECB President, Christine Lagarde, and the European Commissioner, Valdis Dombrovskis. The consensus will ensure that finance ministers contribute to the decision on whether to issue the digital euro and how much citizens can hold. This is intended to alleviate concerns about potential bank withdrawals and maintain market stability.
This project is scheduled to begin pilot testing in 2027, and, assuming legislative approval, it is expected to be launched in 2029. Nevertheless, there are still debates in European financial circles regarding the way the currency operates and its net effect on the system.
Diverging Views and Europe’s Path Toward Digital Competitiveness
Some groups remain cautious. The German Banking Industry Committee and conservative Member of the European Parliament, Fernando Navarrete, both have voiced a protest. Navarrete introduced a watered-down variant, specifically on retail payments, as he indicated that the existing settlement systems can efficiently manage wholesale transactions.
Although there is a divergent view, the banking sector in Italy remains optimistic about the project. A coordinated implementation may enhance Europe’s digital competitiveness and secure its future in the dynamic global financial environment.
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