Italian Banks Support Digital Euro but Press ECB to Ease Rollout Costs

Italian banks say they support the European Central Bank’s plan for a digital euro but want the bill spread over several years to avoid straining balance sheets. Marco Elio Rottigni, General Manager of the Italian Banking Association, said the project advances Europe’s “digital sovereignty,” yet implementation costs are heavy alongside banks’ existing capital expenditures and should be phased in over time.

Their stance lands as parts of France and Germany’s banking sectors voice concern that an ECB-issued retail wallet could siphon deposits from commercial lenders. To calm those risks, policymakers are narrowing the project’s scope. Following a two-year preparatory phase, the ECB’s Governing Council approved moving into the next stage at its October 29–30 meeting in Florence, with a pilot slated for 2027 and a potential launch targeted for 2029, contingent on EU legislation expected in 2026.

In Parliament, rapporteur Fernando Navarrete has tabled a draft report urging a scaled-down design that preserves room for private payment systems, including Wero, a consortium effort by 14 European banks. Rottigni backed a “twin approach” that pairs an ECB digital euro with commercial bank-issued digital money, arguing Europe cannot afford to lag global peers.

To build the rails, the ECB recently signed framework agreements with seven technology providers covering fraud prevention, risk controls, secure data exchange, and software development. Participants include fraud-detection firm Feedzai and security specialist Giesecke+Devrient (G+D). Planned features under exploration include alias lookup, allowing transfers without sharing a recipient’s payment service provider details, and offline payment capability for resilience and privacy.

With timelines set and technical partners onboard, the debate now centers on who pays, how quickly rollout proceeds, and how the design can expand digital options for consumers without destabilizing Europe’s banking system.