Italy Backs Digital Euro but Urges ECB to Share High Implementation Costs by 2025

• Why Is Italy Supporting the Digital Euro?
• What’s Holding Back the Digital Euro’s Rollout?
• How Are Other Countries Advancing Their CBDCs?
• What’s the Bigger Picture for Europe?
• FAQs: Digital Euro and Global CBDCs

Italy’s banking sector has thrown its weight behind the European Central Bank’s (ECB) digital euro project, calling it a crucial step for Europe’s digital sovereignty. However, banks are pushing for a flexible, long-term payment plan to manage the "substantial" implementation costs. Meanwhile, China’s digital yuan is already making waves globally, while other nations like the UK and Japan play catch-up. Here’s the full breakdown.

Why Is Italy Supporting the Digital Euro?

Italy’s banking association, ABI, has publicly endorsed the ECB’s digital euro initiative, seeing it as a way to reduce reliance on non-European payment providers like U.S. card networks and stablecoins. Marco Elio Rottigni, ABI’s Director-General, stated, "We support the digital euro because it embodies digital sovereignty." However, he emphasized that the costs are "very high" given ongoing capital expenditures and suggested spreading them over time.

What’s Holding Back the Digital Euro’s Rollout?

Despite Italy’s enthusiasm, opposition from French and German banks has slowed legislative progress. Their concern? Millions of Europeans might shift daily payments to an ECB digital wallet, draining bank deposits. Still, the ECB’s Governing Council has advanced the project to its next phase after a two-year preparation period. A pilot is expected in 2027, with a full launch by 2029—pending EU legislation adoption in 2026.

How Are Other Countries Advancing Their CBDCs?

While Europe debates, China is sprinting ahead. By 2025, its digital yuan will be operational in 18 countries, from Thailand to the UAE. The UK’s "Britcoin" remains in testing, and Japan’s digital yen is progressing slowly. Sweden’s e-Krona and Brazil’s DREX (integrated with smart contracts) highlight how CBDCs can boost financial inclusion. Meanwhile, the U.S. focuses on regulating private stablecoins while blocking a Fed-issued CBDC over surveillance risks.

What’s the Bigger Picture for Europe?

Fernando Navarrete, a Spanish EU lawmaker, recently proposed a scaled-down digital euro to protect private payment initiatives like Wero (backed by 14 European financial institutions). This reflects broader tensions: while many support the digital euro, safeguards against financial instability are non-negotiable.

FAQs: Digital Euro and Global CBDCs

Why does Italy support the digital euro?

Italy sees it as vital for reducing dependence on non-EU payment systems and strengthening Europe’s digital sovereignty.

When will the digital euro launch?

A pilot begins in 2027, with full rollout expected by 2029 if EU legislation passes in 2026.

How does China’s digital yuan compare?

China is far ahead, with its CBDC already live in 18 countries as of 2025, while Europe’s project faces political hurdles.