Italy’s banks are apparently reluctantly onboard with the ECB’s Digital Euro, although they are against the high costs. Accordingly, the lenders say they hope to spread the huge costs over years, hinting at a Digital Euro plan that could cripple their finances.
Marco Elio Rottigni, head of the Italian Banking Association (ABI), spoke out at a press event. He backed the ECB’s Digital Euro for its promise of “digital sovereignty.”
According to Reuters however, Rottigni slammed the steep upfront bills saying the “costs are high,”
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Banks want payments stretched out to survive the blow from the ECB’s Digital Euro.
ECB’s Digital Euro is detrimental to Crypto
The European Central Bank (ECB) just locked in a roadmap with EU finance ministers for a central bank digital currency (CBDC), called the ECB’s Digital Euro with aims for a 2029 launch. This is of course if all EU lawmakers are on board and sign by 2026.
A 2027 pilot is planned first. ECB chief Christine Lagarde and EU Commissioner Valdis Dombrovskis cut a deal to calm nerves. Ministers will control issuance and set limits on how much each person can hold in the ECB’s Digital Euro.
The goal? Stop bank runs. But these fixes mask the real threat: sky-high costs that banks say they cannot handle now.
Rottigni pushed for a “twin approach” to pair the slow ECB’s Digital Euro with faster commercial bank digital money.
“Europe shouldn’t fall behind,” he warned. The U.S. already leads with its GENIUS Act regulating stablecoins this year.
Without speed, the ECB’s Digital Euro could leave Europe in the dust. This plea shows even supporters doubt the project’s pace and price.
However, the opposition to ECB’s Digital Euro also grows louder
Germany’s top banking group fights hard against the Digital Euro.
Lawmaker Fernando Navarrete is campaigning for a weak version with offline payments only and no real-time deals.
“The digital euro should not cater for payments between financial intermediaries,” he stated in a new report.
His cut-down plan highlights fears that the full ECB’s Digital Euro will wreck current systems and spark turmoil.
Costs dominate the debate. Italian banks refuse to front the cash for tech upgrades and security. Without phased payments, the ECB’s Digital Euro risks losing key allies. Reuters notes this standoff is stalling progress as banks bargain for relief.
Wider doubts cloud the future. Critics fear too much central power or failure against private cryptos. EU approval next year hangs in doubt, with tests years away.
Italy’s half-hearted support, yes to the idea, no to instant costs actually echoes Europe-wide worry. However, ECB President Christine Lagarde calls digital euro CBDC a “symbol of trust in our common destiny”.
