Italian Banks Advocate for Digital Euro Despite High Costs
- Italian banks back the digital euro but seek cost distribution.
- Support due to digital sovereignty concerns; cost concerns noted.
- ECB moves digital euro forward, impacts yet to unfold.
Italian banks, spearheaded by ABI and Marco Elio Rottigni, support the digital euro, urging for cost distribution due to significant capital expenditures, at a recent meeting in Florence.
The move to advance the digital euro addresses digital sovereignty, with Italian banks highlighting financial burdens, though immediate crypto market impacts remain unobserved.
Italian banks, led by the ABI and Marco Elio Rottigni, support the European Central Bank’s digital euro project but advocate for spreading high implementation costs over time.
The digital euro initiative underlines digital sovereignty but imposes substantial costs on banks, prompting calls for phased expenditure.
Italian Banks Urge Phased Digital Euro Costs
Italian banks, steered by the ABI, support the European Central Bank’s digital euro project. The initiative progresses, stressing digital sovereignty, while banks emphasize the need for cost distribution due to significant capital expenditure.
The project recently moved to its next phase after two years of preparation, with Marco Elio Rottigni expressing the need to spread costs gradually, highlighting financial feasibility challenges for banks.
“We’re in favour of the digital euro because it embodies a concept of digital sovereignty. Costs for the project, however, are very high in the context of the capital expenditure banks must sustain, they could be spread over time.” — Marco Elio Rottigni, General Manager, ABI
Uncertain Impact on Cryptocurrencies Amid Cost Concerns
The immediate impact on cryptocurrencies like ETH or BTC is undefined, though banks highlight potential financial strain. The strategic movement prompts discussions on digital sovereignty over non-European payment providers.
No specific funding or grants for the digital euro project were disclosed for Italian banks, underscoring the importance of cost management amidst industry-wide capital expenditure concerns.
Recurring Concerns in European CBDC Developments
Similar cost concerns surfaced in previous CBDC explorations within Europe, facing resistance from French and German banks. This shows the recurring theme of cautious financial planning amid large-scale projects.
Experts predict that continued emphasis on digital sovereignty might reshape the EU’s payment landscape, potentially affecting stablecoins and European private payment providers over time.
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