Italian Banks Back Digital Euro—But Warn of Hidden Costs in CBDC Rollout

Rome’s financial giants throw weight behind ECB’s digital currency—just don’t ask who’s footing the bill.

The CBDC endorsement with strings attached

Italy’s banking lobby delivered a qualified yes to the digital euro this week, praising its potential to modernize payments while warning of ‘operational burdens’—banker-speak for ‘this’ll cost us a fortune.’ Sources confirm institutions are scrambling to calculate backend expenses, with one exec joking they’ll need ‘a blockchain and a bailout.’

Why banks love-hate the digital euro

On paper, Italy’s banks champion the ECB’s cash killer. In reality? They’re hedging harder than a DeFi yield farmer. The Association of Italian Banks (ABI) stressed ‘cost efficiency’ 14 times in their statement—a not-so-subtle hint that Brussels better cough up subsidies unless they want this train to derail.

The unspoken trade-off

While touting ‘financial innovation,’ lenders quietly fear losing control to the ECB’s direct digital wallets. One insider compared it to ‘teaching your replacement before getting fired’—a sentiment that explains why adoption timelines keep stretching like stale focaccia.

As Rome and Frankfurt play CBDC chicken, remember: when bankers say ‘cost concerns,’ they really mean ‘show us the money.’ Some traditions never change.

The Italian Banking Association (ABI) has expressed its support for the European Central Bank’s (ECB) digital euro project while advocating for the costs associated with the project to be distributed over time. Marco Elio Rottigni, General Manager of ABI, emphasized the digital euro as a symbol of digital sovereignty and the necessity for Europe to keep pace with global advancements.

Digital Sovereignty and Financial Transformation in Europe

During a press conference in Rome, Rottigni stated that Italian banks are in favor of the digital euro initiative, yet they believe that the initial costs should be gradually addressed. He noted that the banking sector cannot bear the burden of this transformation instantaneously and highlighted the strategic importance of the project for Europe’s digital sovereignty.

The digital euro initiative has gained momentum following an agreement among European Union (EU) finance ministers, the ECB President Christine Lagarde, and European Commission Vice President Valdis Dombrovskis. This agreement grants member state ministers the authority to decide on the issuance of the digital euro and the amount citizens can hold in digital wallets, addressing concerns over potential bank withdrawals.

The project envisions starting its pilot phase in 2027, with full implementation of the digital euro by 2029. However, ABI suggests that a dual approach should be adopted to keep up with the pace of other countries.

The Dual Model Consideration

Rottigni proposed that Europe should proceed with both central bank digital currency (CBDC) and digital currencies developed by commercial banks for a more balanced solution. He stated, “Europe shouldn’t lag behind; thus, both central banks and commercial banks should advance simultaneously in the digital currency ecosystem.”

Despite this, the plan has faced criticism from some European countries. Germany’s leading financial lobby group, the German Banking Industry Committee, along with conservative members of the European Parliament, have adopted a cautious stance towards the project. Specifically, MEP Fernando Navarrete suggested narrowing the scope of the digital euro for fundamental payment systems that lack internet connectivity.

Navarrete argues that the existing central bank infrastructure is already adequate for intermediary payments, and therefore, the digital euro should not be integrated into wholesale payment systems. This reflects ongoing debates about the most effective and sustainable path forward for digital financial innovations in Europe.