EU Digital Euro Gains Support with Calls for Cost Relief and Dual-Track Approach

The Italian Banking Association (ABI) has voiced strong support for the EU's digital euro, framing it as essential for Europe's digital sovereignty. However, the ABI is pushing for practical adjustments, particularly in spreading out early development costs to avoid burdening banks with large upfront expenses. Marco Elio Rottigni, ABI's general manager, emphasized the need for cost timing flexibility to maintain competitiveness, especially as other jurisdictions like the U.S. advance their stablecoin legislation.

Rottigni also proposed a two-track system, where a digital euro WOULD launch alongside commercial-bank-issued digital currencies to accelerate adoption. The EU recently reached political consensus on the project, with finance ministers securing oversight on the CBDC's launch and holding limits per citizen to mitigate concerns about private sector deposit flight. Pilot testing could begin in 2027, with a potential public rollout by 2029.

Despite progress, the initiative faces opposition from German banking groups and conservative EU lawmakers, who advocate for a scaled-back model.