Italian banking association ready to accept digital euro

The Italian Banking Association (ABI) has disclosed that it is willing to support the introduction of digital currency from the European Central Bank.

An update on the ABI website claimed that the association had accepted directions to manage its stance on digital currency and central bank digital currencies (CBDCs). 

The ABI stated it was ready to “participate in projects and experiments regarding a digital currency from the European Central Bank […] to speed up the implementation of a European-level initiative.”

The digital currency has to be fully trusted by citizens. To this end, it is crucial that the highest standards of regulatory compliance, security, and supervision are adhered to, the group stated. The ABI mentioned monetary stability and following regulations related to a digital euro as two of its top priorities.

The association said that the introduction of a European CBDC may lead to a greater number of cross-border P2P transactions, reduce the clash of the interest and exchange rates, and overall just lessen the bureaucratic process for payments. 

ABI states that developing a digital currency in the European Union (EU) could replace the demand for cryptocurrencies. On May 20, France became the first country to successfully test a digital euro, functioning on a blockchain.

 The Dutch Central Bank is ready to play a leading role in CBDCs in the EU.

The ABI already uses distributed ledger technology (DLT) for its blockchain-powered inter-banking system. The project, called Spunta, is linked with Italy’s inclusion in a group of six other European nations—Malta, France, Cyprus, Portugal, Spain, and Greece—who consented to promote the use of DLT in the EU.