Italy's Banking Sector Backs Digital Euro Despite Significant Implementation Costs

MevTears · 2026-01-12T11:17:05+00:00

Italian banks support the ECB's digital euro but seek flexible timelines to manage costs. They advocate for a dual-track strategy of developing both central and commercial bank digital currencies to remain competitive and ensure a gradual investment approach.

MevTears

2026-01-12 11:17:05

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Italian financial institutions have thrown their support behind the European Central Bank’s digital euro project, though they’re requesting more flexible timelines to manage the substantial expenses involved. According to Marco Elio Rotini, the General Manager of Italy’s banking association, the industry recognizes the strategic importance of this initiative even while grappling with considerable funding requirements.

The financial burden represents a key consideration for Italian banks. Rather than absorbing these costs in a compressed timeframe, the sector is advocating for a more gradual investment approach. Rotini emphasized that banks remain committed because the digital euro aligns with Europe’s push for independent digital financial infrastructure—a concept increasingly vital in today’s geopolitical landscape.

ECB’s Development Timeline and EU Approval Process

The European Central Bank has coordinated with EU finance ministers to establish a clear development roadmap for rolling out the digital euro. Current projections point to a 2029 launch date, contingent upon receiving necessary EU approval during the upcoming legislative cycle next year. This timeline provides a window for banks to plan and distribute their financial commitments more strategically.

Dual-Track Currency Strategy

Rather than betting exclusively on central bank digital currency, Italian banks are advocating for a parallel approach that simultaneously develops commercial bank digital currencies. This two-pronged strategy aims to ensure that Italy remains competitive with other European and global nations advancing their own digital currency initiatives. By pursuing both paths concurrently, the banking sector hopes to maintain relevance and innovation capacity in the evolving financial ecosystem.

Rotini’s position reflects a pragmatic approach: acknowledging the necessity of digital transformation while negotiating realistic implementation conditions for the Italy digital currency landscape.

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