Italian Banks Support Digital Euro But Seek Cost Reduction

Italian banks, led by the ABI, support the ECB’s digital euro initiative, advocating for cost distribution over several years, as revealed in recent statements in Florence.

This development reflects complexities of the digital euro’s implementation, underscoring the need for cost-effective strategies amid high costs.

Italian Banks Support Digital Euro But Seek Cost Reduction

Italian banks, led by the ABI, support the European Central Bank’s initiative for a digital euro. These banks are urging for a phased cost implementation to manage the high expenses associated with this innovation.

Marco Elio Rottigni, General Manager of ABI, stated, “We’re in favour of the digital euro because it embodies a concept of digital sovereignty.” However, he pointed out the necessity of spreading the capital expenditure over time due to the project’s high costs.

ECB Digital Euro Costs Projected at €4–5.8 Billion

The high costs associated with the digital euro project are a major concern for Italian banks. They are seeking to reduce immediate financial burdens by advocating for a gradual capital allocation approach, mitigating risks to their financial standings. The ECB’s projected costs for the digital euro range from €4–5.8 billion for banks. This initiative could spur B2B fintech growth despite current regulatory uncertainties and high-interest rates affecting the fintech sector.

Minimal Immediate Impact Expected on BTC and ETH

Comparative analysis with China’s digital yuan and the U.S. digital dollar shows liquidity shifts but limited impacts on the cryptocurrency markets. The digital euro aims for gradual rollout similar to these past initiatives. Experts suggest minimal immediate impact on major cryptocurrencies like BTC and ETH. However, the digital euro could influence euro-pegged stablecoins, contingent on its scale of adoption and regulatory frameworks.

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