Last week, the Italian Banking Association (ABI) announced that along with over 700 institutions, it is ready to pilot a digital euro project, with central and private banks.
Objectives of the Digital Euro project
Italian institutions want to initiate a digital currency that is supported and financed by the European Central Bank (ECB). The main objectives for this digital euro project include participating in various digital asset projects worldwide and developing partnerships with local, international firms in digital experiments to gain exposure.
In a detailed announcement, ABI said the group implied and considered 10 important points before the development of this digital euro project. A major objective was to balance money stability and “full compliance” with the European infrastructure and economy. ABI noted that compliance with the European framework must “be preserved as a matter of priority.”
It also focused on laying out a structure that is compliant-ready and wins over the heart of the public and banks playing a part in this project.
In terms of advantages of the Central Bank Digital Currency (CBDC), the company said the innovation can lead to changes in how banking proceeds all around the world. It would bring such a change in everyday payments as a currency would move from fiat to digital. The announcement added:
A programmable digital currency represents an innovation in the financial field capable of profoundly revolutionizing money and exchange. This is a transformation capable of bringing significant potential added value, particularly in terms of the efficiency of the operating and management processes.
Europe’s Crypto attack
The Digital Euro proposal is not the first success out of Italy regarding digital currencies.
ABI, in its announcement, said, many Italian banks were already using blockchain systems to fasten the processing of interbank settlements. This includes both local and overseas transactions that have been fastened due to this technology.
The German central bank said CBDCs could disturb the financial systems since its new in town. But soon after, the association of German Banks made an announcement vouching for a programmable digital euro with no effects on the economy.