The digital euro undertaking of the ECB has been approved by Italian financial institutions, but a request was made for deployment expenditures to be dispersed across numerous years.
Approval has been voiced by Italian financial institutions for the European Central Bank’s ECB digital euro undertaking, but they are requesting that the deployment expenses be distributed across numerous years owing to the fiscal weight it imposes on the industry.
“The digital euro is supported by us since it encompasses a notion of electronic supremacy,” stated Marco Elio Rottigni, General Manager of the Italian Banking Association ABI, during a media colloquium in Florence, as reported by Reuters on Friday.
“Costs for the project, however, are very high in the context of the capital expenditure banks must sustain. They could be spread over time,”
Rottigni added.
The remarks arrive just as the sovereign monetary authority digital token CBDC undertaking has encountered opposition from certain French and German financial institutions, which are concerned the introduction of a retail ledger sponsored by the ECB could siphon funds away from commercial credit providers.
ECB Targets 2029 for Digital Euro Launch
At its October 29–30 assembly in Florence, the ECB’s Governing Council endorsed advancing the undertaking into its subsequent stage following a two-year readiness timeframe. A test phase is anticipated to commence in 2027, with a complete deployment tentatively set for 2029, awaiting the enactment of EU statute in 2026.
European Parliament representative Fernando Navarrete, who is directing the assembly’s assessment of the proposition, lately submitted a preliminary brief petitioning for a diminished rendition of the digital euro to shield private transfer systems such as Wero, a shared venture implemented by 14 European banks, according to the document.
Rottigni stated a “dual strategy” ought to be sought by Europe, merging the ECB’s digital euro with electronic tokens supported by commercial financial institutions. “Falling behind is what Europe must avoid,” he concluded.
ECB Partners with Tech Firms to Develop Digital Euro
Last month, framework accords were completed by the ECB with seven technology suppliers to aid the creation of a prospective digital euro. The arrangements encompass deceit and hazard mitigation, safe payment information transfer, and software construction.
Included amongst the companies taking part are deceit identification expert Feedzai and security technology enterprise Giesecke+Devrient (G+D).
As stated by the ECB, the chosen corporations will additionally formulate capabilities such as “pseudonym discovery,” allowing clientele to transmit or obtain transfers without requiring knowledge of the beneficiary’s payment facility supplier and disconnected payment features.
