Italian banks say they support the European Central Bank’s (ECB) efforts to introduce a “digital euro” but want costs for the project to be spread over time.
“We are in favor of the digital euro because it embodies a concept of digital sovereignty,” Marco Elio Rottigni, general director of the Italian Banking Association (ABI), said at a press seminar in Florence.
“However, the costs for the project are very high in the context of the capital expenditures that banks have to make,” Rottigni said, adding that these costs “could be spread over time.”
ECB wants to strengthen the monetary sovereignty of the European Union
The ECB has been working on a digital version of the euro to strengthen the EU’s monetary sovereignty.
With the proposed digital euro, the ECB is trying to ensure that central bank money remains accessible and relevant in an increasingly digital economy. At the same time, the ECB also wants to reduce dependence on non-European payment service providers in direct response to the rise of stablecoins.
The digital euro would complement banknotes and extend the benefits of cash into the digital sphere. This is important because euro cash brings us together.
Europeans would have the freedom to use the digital euro for any digital payment, online or offline, throughout the euro… pic.twitter.com/XzNZbl6mD8
— European Central Bank (@ecb) October 31, 2025
However, the legislative process for the proposed central bank digital currency (CBDC) has struggled to build momentum as some German and French banks in particular have opposed the initiative.
They say the digital euro could lead to a massive liquidity drain on bank deposits as people turn to an online ECB wallet for everyday payments.
Recently, the ECB Governing Council decided to take the digital euro project to the next phase. This follows the completion of a two-year preparation period.
The launch is expected in 2029, after a pilot phase in 2027, but will be subject to the adoption of EU legislation expected in 2026, the report said.
Scaled down version of CBDC proposed to speed up rollout
The assessment of the digital euro is led by European MP Fernando Navarrete of the Spanish Partido Popular.
He presented his draft report on October 28 promoting a scaled-down version of the system that protects private payment initiatives such as Wero.
“We are in favor of a dual approach, a central bank digital currency and a commercial bank digital currency, which can develop faster, because what Europe should not do is fall behind,” Rottigni said.
The US Fed Governor says US policy must catch up with stable coin growth
The ECB’s digital euro initiative comes amid a boom in the stablecoin market, sparked by President Donald Trump’s signing of the GENIUS Act in the US in July.
Stablecoin Market Overview (Source: CoinMarketCap)
According to CoinMarketCap, the market capitalization of the stablecoin market has risen to $313 billion. Leading the market are tokens pegged to the US dollar, such as Tether’s USDT and Circle’s USDC.
Federal Reserve Governor Stephen Miran has warned that widespread adoption of stablecoins means widespread adoption of stablecoins Policymaking must keep pace with the rapid growth of the market.
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