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Italian Banks Back Digital Euro, Urge Phased Costs and Twin-System Model

The ECB targets a 2027 pilot with a possible 2029 launch contingent on EU legislation in 2026.

Overview

  • Italy’s banking association endorsed the project but asked the ECB to phase in banks’ implementation spending because the outlays are “very high.”
  • The ECB advanced the initiative to its next phase after a two-year preparation period, with key dates hinging on the European legislative calendar.
  • ABI promoted a twin setup in which a central bank digital euro coexists with commercial bank digital currencies to preserve private-sector innovation.
  • Some major French and German lenders oppose the plan, warning that use of an ECB wallet for daily payments could drain deposits from commercial banks.
  • Lawmakers are considering design safeguards and scaled-down options, including MEP Fernando Navarrete’s proposal to protect private payment schemes such as Wero.