Italian banks are ready to test digital euro

by in Cryptocurrency News

Euro

The Italian Banking Association (ABI) announced last week that the country's banks are ready to test the digital euro.

ABI includes more than 700 Italian banks. The association expressed a desire to help accelerate the introduction of the digital currency (CBDC) from the ECB by participating in relevant experiments.

ABI has set up a digital asset research working group. The group has already indicated its readiness to consider at least 10 CBDC criteria, including “stability of monetary policy” and “full compliance with the European regulatory framework.”

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According to the group, the CBDC should also “gain public confidence,” while “banks must play a crucial role in maintaining that confidence.”

The Italian working group reported that the country's banks are already working with blockchain technology in the Spunta project, aimed at accelerating the processing of interbank settlements.

In general, the group believes that CBDC can lay the foundation for future innovations in the traditional banking system, including p2p transactions, management of exchange rates, and interest rate risk.

In 2020, the central banks of France and the Netherlands also announced their willingness to test the CBDC.

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In 2019, German central bank governor Jens Weidmann warned that CBDC could destabilize financial systems. In 2020, the German Banking Association came out in defense of digital money.