We are Ready For A Digital Euro, Says Italian Banking Association

News / 23.06.2020

We are ready to work on the establishment of a European central bank digital currency, says the Italian Banking Association (ABI). The ABI announced its willingness to support the implementation of a digital currency from the European Central Bank.

The association’s website noted the approval of guidelines governing its position on digital currency and central bank digital currencies (CBDCs) on June 18.

The ABI, which represents a group of banks in Italy, said it was ready to take part in projects and experiments related to a digital currency from the European Central Bank in speeding up the implementation of a European-level initiative.

According to the group, there is a need for citizens to have full trust in digital money; hence, it is necessary to adhere to the highest standards of regulatory compliance, safety and supervision. Monetary stability and respecting regulations regarding a digital euro are two of our top priorities, said the group.

If a European CBDC is created, it could increase the number of cross-border P2P transactions to a greater extent, reduce the effect of interest and exchange rates, and generally reduce the size of the bureaucratic process for payments, said the group. Interestingly, the ABI said the development of a European digital currency could replace the demand for cryptocurrencies.

“The existence of [a European CBDC] could at the same time reduce the attractiveness of instruments of comparable use but issued by private individuals or (in cases of complete decentralization) which cannot be identified, characterized by an intrinsically higher risk profile.”

As several countries look into the development of their CBDC, France was able to successfully trial a digital euro, operational on a blockchain, on May 20. Likewise, the apex bank of the Netherlands announced its readiness to lead the development of CBDCs in the EU.

The ABI has an interbanking system built on distributed ledger technology (DLT) and powered by blockchain.

Source: Cryptopress

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Sudarshan M is a long time crypto-enthusiast. Pulled in by bitcoin early on, it did not take long for Sudarshan to divert all of his academic attention from business studies to blockchain by doing his Masters and eventually pursuing his PhD in the subject.