Italy’s banking sector has expressed strong support for the European Central Bank’s (ECB) proposed digital euro project, something it sees as a vital step to retain Europe’s digital sovereignty and reduce dependence on non-European payment providers like U.S.-based card networks and stablecoins.
While the Italian banking sector has expressed enthusiasm for the digital euro initiative, the banks are also pushing for a flexible, long-term payment plan to manage the substantial implementation costs, which they have described as “very high” when one considers other ongoing capital expenditures.
“We’re in favor of the digital euro because it embodies a concept of digital sovereignty,” ABI General Manager Marco Elio Rottigni said on Friday. “Costs for the project, however, are very high in the context of the capital expenditure banks must sustain, they could be spread over time.”
Italy’s support for the digital euro comes with a caveat
The main purpose of the digital version of the single currency that the ECB has been working hard on is to strengthen the euro area’s monetary sovereignty while reducing reliance on non-European payment service providers and to address the rise of stablecoins.
Unfortunately, though, the legislative process has been slow, thanks to opposition from some French and German banks worried it could cause millions of Europeans to switch to using an online ECB wallet for daily payments, a reality that would drain away their bank deposits.
Despite the opposition, the ECB’s Governing Council has now taken the digital euro project to its next phase, having completed a two-year preparation period.
“We’re in favor of a twin approach, a central bank digital currency and commercial bank digital currencies, which may develop faster, because what Europe shouldn’t do is fall behind,” Rottigni said.
The launch is expected to happen in 2029, following a pilot phase expected to begin in 2027, contingent on the adoption of EU legislation, which is to happen in 2026.
Meanwhile, European parliament member Fernando Navarrete, of Spain’s Partido Popular, who is in charge of the parliament’s assessment of the digital euro, submitted a draft report on October 28 in which he promoted a scaled-down version of the scheme to safeguard private payment initiatives such as Wero, which is backed by 14 European lenders.
This shows that while supportive of the general movement, some voices from the parliament are not ready to move forward without established safeguards against financial strain.
How other regions are progressing with plans for a CBDC
While there is little doubt that the introduction of CBDCs presents new systemic risks, including potential cyberattacks and digital bank runs, necessitating robust governance and security measures, countries like China have forged ahead with it. Observers believe these moves are attempts to maintain monetary sovereignty.
China has been preparing for its CBDC for years now, and as of 2025, has deployed its digital yuan in eighteen countries, from Thailand to Kazakhstan and the United Arab Emirates.
Other countries exploring CBDCs include the UK with its Britcoin, which is still limited to sandbox testing; Japan with the Digital Yen, which is supposed to be an alternative to the digital yuan, but is being treated without urgency.
Sweden and its e-Krona, an alternative it is testing as an open-source digital currency with partial anonymity for small payments, and Brazil with the DREX, which is supposed to be integrated into smart contracts for social assistance, are demonstrating how a CBDC can promote financial inclusion.
Meanwhile, US legislative moves have been focused on setting the regulatory framework to regulate private stablecoin issuers, while barring the central bank from ever issuing its own CBDC due to monitoring and surveillance risks.
