Quick Takeaways
- Italy supports the ECB’s digital euro but wants setup costs shared over time.
- The pilot phase may begin in 2027, with a full rollout by 2029.
- Italy advocates a “twin system” combining ECB and commercial digital currencies.
Italy Pushes for Fair Costs in Digital Euro Rollout
Italy’s banking sector has voiced strong support for the European Central Bank’s (ECB) digital euro project. However, it wants a balanced approach where the costs of building the new system are shared fairly among EU participants.
Marco Elio Rottigni, general manager of the Italian Banking Association (ABI), called the digital euro “a milestone for European digital sovereignty.” Still, he cautioned that banks cannot bear the entire expense of developing the infrastructure.
Digital Euro Could Launch by 2029
The digital euro aims to create a European central bank–issued currency accessible to all EU citizens. The initiative is still in early stages, but is moving forward after recent discussions between EU finance ministers and ECB President Christine Lagarde.
If approved by lawmakers in 2026, the project will enter a pilot phase by 2027. A full-scale launch could follow in 2029, marking Europe’s entry into the era of state-backed digital money.
Italy’s “Twin System” Approach
Rottigni proposed a dual framework that blends the ECB’s digital euro with commercial bank–issued digital currencies. He argued this “twin system” would help Europe move faster while maintaining flexibility.
He pointed to the U.S. GENIUS Act on stablecoin regulation as proof that other economies are already adapting quickly to the shift toward digital finance.
Northern Europe Remains Cautious
Some EU members remain skeptical. Germany’s leading banking groups have warned that a digital euro might weaken commercial banks by diverting deposits.
In Brussels, conservative lawmakers like Fernando Navarrete desire a limited variant of the digital euro focused only on offline retail use, avoiding interruption to existing settlement systems.
Balancing Invention and Stability
Europe at once faces a determining choice between conception and financial stability. The ECB considers the digital euro as key to subdue dependence on foreign payment systems. Nevertheless, many banks fear unintended results if the rollout is mishandled.
Italy’s stance captures the challenge ahead in building a digital future for Europe without undermining the banks that sustain its economy. The coming years will reveal whether the continent can strike that balance by 2029.