- Banks in France and Germany are more cautious, warning that a digital euro could drain deposits from commercial banks.
- European lawmakers remain divided over the project’s scope, with some advocating for a scaled-down version.
Italian banks have voiced strong support for the European Central Bank’s (ECB) digital euro but are asking regulators to spread out the implementation costs over time. The Italian Banking Association (ABI) says the project is a key step toward Europe’s digital sovereignty, but warns the financial burden on banks remains significant.
Speaking at a press seminar in Florence, as quoted by Reuters, ABI General Manager Marco Elio Rottigni said Italian banks “are in favour of the digital euro because it embodies a concept of digital sovereignty.” However, he cautioned that “costs for the project are very high in the context of the capital expenditure banks must sustain,” adding that expenses “could be spread over time.”
The ECB’s digital euro initiative aims to make central bank money accessible in digital form, preserving its relevance in a rapidly evolving financial ecosystem. The plan is also designed to reduce reliance on non-European payment providers and counter the growing influence of stablecoins.
See Related: Binance To Appear In Italian Court Over “Millions Lost”
Divergent Views Across Europe
Not all European banks share Italy’s stance. Lenders in France and Germany have reportedly voiced concerns that a digital euro could shift large volumes of deposits away from commercial banks if consumers begin using ECB-issued digital wallets for everyday payments.
In parallel, European lawmakers continue to debate the project’s scale and design. Fernando Navarrete, a Spanish member of the European Parliament leading its review, recently proposed a pared-down version of the scheme. His draft report calls for safeguarding private payment initiatives such as Wero, a system backed by 14 major European lenders.
The ECB’s Governing Council agreed in late October to move the project into its next phase after completing a two-year preparation period. The current timeline foresees a pilot phase in 2027, followed by a potential rollout in 2029, provided that enabling legislation is approved in 2026.
Rottigni said Italian banks support a “twin approach,” combining the ECB’s central bank digital currency with commercial bank digital currencies that could develop more quickly. “What Europe shouldn’t do is fall behind,” he added.
The ABI’s position underscores a broader message to European policymakers: while the digital euro is a necessary innovation, its implementation must remain financially feasible for banks already facing heavy investment demands.
