Italian Banks Support Digital Euro but Push ECB to Spread Out High Implementation Costs

• Italian banks say they support the digital euro for European “digital sovereignty.”
• However, they warn that the implementation costs are high and should be spread over multiple years.
• Some French and German banks fear the digital euro could pull deposits away from commercial lenders.
• The ECB plans a pilot in 2027 and a full rollout targeted for 2029, pending EU legislation.
• The ECB has signed agreements with seven tech firms to support the project’s development.

Italian banks have publicly backed the European Central Bank’s digital euro initiative, emphasizing that the project represents an important step toward strengthening Europe’s digital financial sovereignty. However, they are urging policymakers to consider a more gradual cost structure to prevent undue financial strain on the banking sector.

Marco Elio Rottigni, General Manager of the Italian Banking Association (ABI), stated during a press briefing that banks recognize the strategic value of a digital euro, but the required investment demands are considerable. He argued that the cost should be distributed over several years to help institutions manage capital expenditure responsibly.

While Italy’s banking sector appears supportive, the digital euro continues to face resistance in parts of Europe. Several French and German banks have raised concerns that offering citizens a central bank-issued retail wallet could lead to a transfer of customer deposits away from commercial banks, potentially affecting lending capacity.

The ECB, meanwhile, is moving ahead. After concluding a two-year preparation phase, the Governing Council approved entering the next development stage. A pilot is scheduled for 2027, and a potential full launch is targeted for 2029, contingent on legislation expected to be reviewed in 2026.

Lawmakers are already weighing in. European Parliament member Fernando Navarrete has proposed a scaled-down version of the digital euro to ensure private sector payment platforms such as Wero remain competitive. The goal, according to several policymakers, is to achieve coexistence, not replacement.

Italy appears to favor this cooperative model. Rottigni urged a “twin approach,” pairing the digital euro with commercial bank-backed digital currencies, stating that Europe must avoid falling behind major global economies, many of which are rapidly accelerating CBDC development.

The ECB has also recently finalized agreements with seven technology providers to support areas such as payment security, fraud prevention, and offline transaction capabilities. Companies involved include Feedzai and Giesecke+Devrient, both known for risk and security infrastructure in digital payments.As the project advances, the central debate continues: how to introduce a digital euro that strengthens Europe’s financial autonomy without disrupting the role of commercial banks in the broader monetary ecosystem.