Italy Backs Digital Euro, But Demands Cost-Sharing and Dual System Approach

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Italy Wants a Digital <a href="https://usdaed.com/eur-usd/">Euro</a> – But Not at Its Own Expense

Key Takeaways

  • Italy’s banking sector supports the ECB’s digital euro but wants costs shared over time.
  • The project could launch in 2029, with a pilot phase in 2027, pending EU approval.
  • Italy advocates a dual system, combining ECB-issued and commercial digital currencies.
  • Germany and EU conservatives are pressing for a scaled-down, low-risk version. 

Italy’s banking industry group, the ABI, welcomes the European Central Bank’s plans for a digital euro, but stresses that banks shouldn’t face significant costs to implement it.

Marco Elio Rottigni, the general manager of the ABI, recently called the digital euro a significant step towards Europe having more control over its digital future. However, he cautioned that banks shouldn’t be solely responsible for funding the necessary infrastructure to support it.

Rottigni described the project as a demonstration of independence, but acknowledged it would be costly. He suggested spreading out the investment expenses over time as the system is built.

A Divided Europe on the Path to 2029

Although still several years off, progress is being made on the digital euro – a proposed digital currency issued by the European Central Bank and intended for use by everyone in the EU. Recently, EU finance ministers and ECB President Christine Lagarde agreed on a plan with European Commissioner Valdis Dombrovskis to outline the next steps for the project.

The agreement gives member states a direct say in whether the digital euro moves forward, and also in setting limits on how much digital money people can own. This is intended to address concerns that a digital euro could lead to large-scale withdrawals from traditional banks.

If lawmakers pass the new laws in 2026, a trial run of the digital currency could begin in 2027, with a complete rollout expected by 2029. This would make Europe one of the first major economies to issue a digital currency backed by the government.

Italy’s “Twin System” Vision

Rottigni believes Europe shouldn’t depend only on the European Central Bank’s plans for a digital euro. He proposes a system where a digital euro from the central bank works alongside digital currencies issued by commercial banks, which could be launched more quickly.

He highlighted the United States, where the GENIUS Act – a law designed to regulate stablecoins – is already in place, to illustrate how rapidly other countries are responding to the growth of digital finance.

As a researcher observing the situation, it’s become clear that Europe’s biggest risk isn’t necessarily the technical challenges we face, but rather falling behind while we get bogged down in details. We really can’t afford to simply stand by and watch other regions progress while we continue to debate the specifics.

Skepticism in the North

As a researcher following the digital euro debate, I’ve noticed not everyone is on board with Italy’s positive outlook. Specifically, Germany’s banking industry has voiced concerns. They worry a digital euro could lead to people withdrawing money from traditional banks and create confusion about the difference between money issued by the central bank and commercial banks.

In Brussels, Fernando Navarrete, a conservative Member of the European Parliament, has suggested a simpler version of the digital euro, one that would only be used for in-person purchases. He believes the digital euro shouldn’t disrupt the current systems banks and payment companies use, as he feels those systems are already working well.

Balancing Innovation With Stability

Europe is at a critical point, and the discussion around a digital euro highlights this. The European Central Bank sees it as a way to boost financial freedom and make international payments easier, but banks are concerned it could create problems or lead to money leaving the region during difficult times.

Italy’s position highlights a key challenge for Europe: updating its financial system without disrupting what already works. The planned digital euro, which is still several years away, is proving to be as much about political goals as economic ones, and will likely reveal how aligned Europe is on its financial future.

This article is for informational purposes only and shouldn’t be considered financial, investment, or trading advice. Coindoo.com doesn’t support or suggest any particular investment or cryptocurrency. Before making any investment choices, be sure to do your own research and talk to a qualified financial advisor.

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2025-11-09 09:11