Italian Banks Back Digital Euro Pilot, Seek Cost-Sharing
Italian banks, led by the Italian Banking Association, have endorsed the ECB’s digital euro project while urging a multi-year cost-sharing plan to offset high implementation expenses. The ECB’s Governing Council approved a 2027 pilot and aims for a 2029 full rollout, pending EU legislation in 2026. MEP Fernando Navarrete suggested a scaled-down digital euro to safeguard private schemes like Wero. ABI head Marco Elio Rottigni proposed a dual-track approach that pairs the central bank’s digital euro with bank-issued digital currencies. Last month, the ECB signed framework agreements with seven tech firms, including Feedzai and Giesecke+Devrient, to develop fraud detection, offline payments and alias lookup features. Traders should monitor pilot outcomes, regulatory milestones and cost models for their potential influence on banking liquidity and digital asset markets.
Neutral
Although the ECB’s digital euro project gains strong institutional backing, its long timeline (2027 pilot, 2029 rollout) and focus on cost-sharing mean limited immediate impact on cryptocurrency prices. The dual-track strategy may spur innovation in bank-issued digital currencies alongside the CBDC but does not directly threaten existing digital assets. Traders should watch for shifts in banking liquidity and stablecoin competition, yet short-term price movements are likely muted. Over the long term, full integration of the digital euro could alter market dynamics depending on regulatory approvals and technical execution.