The Italian Banking Association (ABI) announced on Thursday that its cooperating banks are ready to test digital euros.
Digital euros in Italy
ABI is a big organization. We are talking about an association of over 700 Italian banking institutions. Now it has expressed a desire to accelerate the implementation of the digital currency supported by the European Central Bank (ECB) by participating in related projects and experiments. Last year, ABI also set up a working group to study digital and cryptocurrency resources.
On Thursday, the group shared 10 comments on the digital euro. It was written, among others, that “Priority must be to maintain monetary stability and full compliance with the European regulatory framework.”
The group also prioritized the need for the digital currency framework to be fully in line with EU legislation. This is to help win public confidence. According to Italian experts, banks will play a key role in maintaining this trust.
In the second guideline, the group also stated that Italian banks are already working with distributed book technology, referring to the Spunta project. The project was an ABI Lab initiative involving blockchain integration to accelerate the processing of transactions between banks.
According to the group, the digital currency of the Central Bank (CBDC) would lead to future innovations in the traditional banking system, such as P2P transactions, machine-to-machine transactions, and the ability to manage exchange rate and interest rate risks through programmable digital currency capabilities.
“The programmable digital currency is an innovation in finance that can profoundly revolutionize money. It is a transformation that can bring significant potential added value, especially in terms of the efficiency of operational and management processes. “
– wrote in the message.
Other countries also want to move towards CBDC
Italy is not the first country to express an interest in experimenting with the digital euro. Earlier this year, the French central bank said it also wanted to go in that direction. In turn, the Dutch central bank announced that the Netherlands is ready to try the digital euro.
Last year, the head of the German central bank Jens Weidmann, however, warned in his speech that CBDC could destabilize financial systems.