- Italian banks endorse digital euro, propose cost phasing.
- High implementation costs prompt phased approach.
- Stablecoin competition intensifies digital euro appeal.
Italian banks, through the ABI and General Manager Marco Elio Rottigni, support the digital euro project announced by the ECB on November 7, 2025, in Florence.
Their support hinges on spreading high implementation costs over time, reflecting financial concerns amid large capital expenditure requirements.
Italian banks on the digital euro initiative
Italian banks, led by the Italian Banking Association, support the European Central Bank’s digital euro project. They propose spreading high implementation costs to manage financial burdens effectively. Marco Elio Rottigni highlighted these concerns in a recent statement.
The European Central Bank is spearheading the digital euro initiative to maintain monetary sovereignty and reduce reliance on non-European providers. Italian banks, however, emphasize that costs need spreading due to significant capital expenditure commitments.
Phased approach for cost management
Italian banks’ proposal to phase costs reflects industry needs to manage financial strain effectively. This shift aligns with prior responses to PSD2 standards, allowing banks to adjust over time. The demand for flexibility in implementation is a key priority.
The proposal for cost phasing by banks underlines potential long-term savings and sustained financial health. Notably, scrutiny on stablecoin markets remains, as the digital euro aims to counterbalance their proliferation without immediate impacts on cryptocurrencies.
Challenges and strategic phasing
Concerns over deposit outflows underscore challenges despite overall backing of the digital euro. Italian, French, and German banks’ reactions highlight the importance of strategic phasing to ease the transition. Coordination among European stakeholders is crucial.
Insights suggest regulated and strategic rollouts may mitigate potential obstacles.
We’re in favour of the digital euro because it embodies a concept of digital sovereignty. Costs for the project, however, are very high in the context of the capital expenditure banks must sustain, they could be spread over time. — Marco Elio Rottigni, General Manager, Italian Banking Association (ABI) Source
Historical parallels with the PSD2 standard illustrate successful adaptations when phased approaches are utilized. Regulators might prioritize stakeholder engagement to ensure stable implementation.
