Italy’s banking sector has signalled support for the European Central Bank’s (ECB) digital euro project, while cautioning that the investment costs required for implementation should be spread over time to ease financial pressure, according to a top official from the Italian Banking Association (ABI).

Speaking at a press seminar in Florence on Friday, Marco Elio Rottigni, ABI’s General Manager, said Italian banks see the digital euro as a vital step toward digital sovereignty in Europe.

“We’re in favour of the digital euro because it embodies a concept of digital sovereignty,” Rottigni said. “Costs for the project, however, are very high in the context of the capital expenditure banks must sustain; they could be spread over time.”

The ECB has been developing a digital version of the euro to maintain the relevance of central bank money in an increasingly digital economy, reduce dependence on non-European payment providers, and respond to the rising popularity of stablecoins. The plan could enable millions of Europeans to use an online ECB wallet for daily payments, though some French and German banks have expressed concerns that it might reduce deposits held in commercial banks.

The project recently advanced to its next phase after the ECB’s Governing Council meeting in Florence on October 29–30, following a two-year preparation period. A pilot is scheduled for 2027, with full launch expected in 2029, contingent on the adoption of EU legislation in 2026.

Spanish European Parliament member Fernando Navarrete, representing the Partido Popular, is leading the Parliament’s review of the digital euro. His draft report, presented on October 28, promotes a scaled-down approach aimed at preserving private payment initiatives, such as Wero, a platform supported by 14 European lenders.

Rottigni emphasised the importance of a dual-track approach, combining a central bank digital currency (CBDC) with faster-developing commercial bank digital currencies.

“What Europe shouldn’t do is fall behind. We’re in favour of a twin approach — a central bank digital currency and commercial bank digital currencies which may develop faster,” he said.

The comments highlight Italy’s pragmatic stance: supporting digital innovation while managing the financial and operational challenges banks face in adopting such transformative payment technologies.