Italian banks back digital euro but urge ECB to spread out costs: Reuters
10.11.2025
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Italian banks have endorsed the ECB's digital euro project but called for implementation costs to be spread out over several years due to the financial burden it places on the sector.
Italian banks are giving the green light to the ECB's digital euro but with one major caveat: they want those implementation costs spread out over several years. The financial burden is hitting hard in a sector already dealing with massive capital expenditures.
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.
That's Marco Elio Rottigni, General Manager of the Italian Banking Association (ABI), dropping truth bombs during a press seminar in Florence. Meanwhile, French and German banks are sweating bullets, fearing an ECB-backed retail wallet could drain their precious deposits.
ECB sets 2029 target for digital euro launch
The ECB's Governing Council just approved moving this CBDC project into its next phase after a two-year prep period. Here's the timeline: pilot phase kicks off in 2027, full rollout targeted for 2029. But it all hinges on EU legislation getting adopted in 2026.
European Parliament member Fernando Navarrete is pushing for a scaled-down version to protect private payment systems like Wero (that joint initiative by 14 European banks). Rottigni wants Europe to pursue a 'twin approach' - combining the ECB's digital euro with commercial bank-backed digital currencies. His final warning: 'What Europe shouldn't do is fall behind.'
ECB signs deals with tech firms for digital euro development
Last month, the ECB locked in framework agreements with SEVEN technology providers to build out this potential digital euro. We're talking fraud detection specialists Feedzai, security tech company Giesecke+Devrient (G+D), and others covering fraud/risk management, secure payment data exchange, and software development.
These firms are building game-changing features like 'alias lookup' (send payments without knowing the recipient's payment service provider) and offline payment capabilities. The future is coming, whether banks are ready for the costs or not.
#CBDC#business banking#European Central Bank#legislation#digital euro
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