Italy Supports Digital Euro but Seeks ECB Flexibility on Costs

Italy's banking sector has voiced strong backing for the European Central Bank's digital euro initiative, viewing it as crucial for maintaining Europe's financial sovereignty and reducing reliance on non-European payment providers like U.S. card networks and stablecoins.

While enthusiastic about the project, Italian banks are urging the ECB to implement a phased payment plan to mitigate the 'very high' implementation costs. These expenses come at a time when financial institutions are already grappling with significant capital expenditures.

"We support the digital euro as it represents digital sovereignty," said ABI General Manager Marco Elio Rottigni. "However, the costs should be spread over time given banks' existing financial commitments."

The ECB's digital currency aims to bolster monetary sovereignty in the eurozone while countering the growing influence of stablecoins. Progress has been slow due to resistance from some French and German banks concerned about mass adoption risks.