Support for the Digital Euro
A high-ranking representative of the Italian Banking Association (ABI) has expressed support for the European Central Bank’s (ECB) initiative to establish a digital euro. Although there is enthusiasm for the project, concerns have been raised about the financial burden it may impose. The ABI official indicated a preference for spreading the costs over a longer period to mitigate the impact on banks.
Challenges and Delays
The ECB’s push for a digital currency aims to bolster monetary sovereignty across the eurozone, yet the journey towards its realization has encountered delays. Resistance from certain major banking institutions in France and Germany has contributed to the slow progression, as these banks fear that the introduction of an ECB-operated digital wallet could lead to a significant outflow of funds from traditional banking systems, adversely affecting their deposits.
Future Plans
In a recent meeting in Florence, held from October 29 to 30, the Governing Council of the ECB confirmed its commitment to move the digital euro initiative forward, transitioning from the preparatory phase that has lasted two years.
The project is slated to potentially be launched officially in 2029, following a pilot test scheduled for 2027, assuming EU legislation is approved by 2026.
