The executive committee of the Italian Banking Association (ABI) has given the green light for the creation of a digital Euro and has published guidelines on achieving this on their website.
According to a publication on ABI’s website “10 criteria for a central bank digital currency” published on June 18, the association threw its weight behind the issuing of a European central bank digital currency for public use which would represent a revolution of cash, stating that Italian banks are already operating on a Distributed Ledger Technology (DLT) infrastructure with the already existing Spunta project.
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, in particular in terms of the efficiency of the operating and management processes. Hence the importance of dedicating attention and energy to develop, quickly and with the collaboration of all the players in the ecosystem, useful tools above all for the development of the Euro area.
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The Italian Banking Association projects that the creation of a European CBDC will revolutionize the banking sector by reducing administrative processes, mitigating the impact of interest and exchange rates, bringing new innovative tools for everyday peer-to-peer transactions and providing an effective currency to settle peer-to-peer cross-border transactions.
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ABI believes this is the right time to create a European CBDC bringing into consideration the existence of other digital currencies issued by private organizations. A European CBDC will reduce the attractiveness to these digital currencies issued by private organizations or unknown individuals (in cases of complete decentralization) thereby reducing the risk involved with using these digital currencies.
The Italian Banking Association (ABI) joins the Association of German Banks in advocating for the creation of a digital euro. Earlier this year, the Dutch Central Bank announced that the Netherlands was willing to experiment a digital euro, with France’s Central Bank calling for CBDC experiments.