Many European banking groups are not supportive of the digital euro, Europe’s proposed central bank digital currency (CBDC). By contrast, the Italian Banking Association (ABI) has embraced it from the start. Despite this, a recent opinion piece by the association’s Director General, Marco Elio Rottigni, highlights the financial impact on banks. It estimates Italian bank IT costs as €880 million ($953m) plus, with a potential knock on effect on the capacity of banks to engage in other innovations.
“The digital euro has some important objectives for the community, including preserving Europe’s strategic autonomy and monetary sovereignty, reducing dependency on non-European operators, promoting innovation and a harmonized user experience in retail payments in Europe,” he wrote.
Despite this positive viewpoint, he noted the widely researched impact on bank deposits, some overlap with other payment methods, and the cost of IT development at banks. Hence, the ABI explored the IT costs with 18 banks. Based on the proposed rule book, it estimates the cost to Italian banks at €880 million.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
